COMMISSIONER OF CENTRAL EXCISE, MUMBAI Vs. VOLTAS LTD.

JUDGEMENT

(1.) The question raised in the present appeal pertains to the valuation of goods manufactured on job work basis and the issue is as to whether it includes actual fabrication cost by the processor or only the fabrication charges received on the material supplied.

(2.) The goods were used for captive consumption. On that basis, the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as 'CESTAT') has held that Rule 6(b)(i) of the Valuation Rules is not applicable when the goods are produced on job work basis and returned to the raw material supplier. In coming to this conclusion, the CESTAT has relied upon the judgment of this Court in 'Collector v. Kandivali Metal Works [1998 (97) E.L.T. A222 (S.C.). We may note that this legal position has been reiterated by this very Bench in 'Commissioner of Central Excise, Pune v. Mahindra Ugine Steel Co. Ltd. [2015 (318) E.L.T. 592].

(3.) We, thus, do not find any merit in this appeal which is, accordingly, dismissed.