BHUPINDER STEELS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The issue raised in these appeals at the instance of the assessee is whether the value of pattern calculated at the rate of 4% of the total value of the castings are to be included in the assessable value or not. The castings are tailor made for various customers who supplied their own patterns. The patterns are given on loan basis by the customers and the patterns are non -consumable and capable of repeated use and producing innumerable cast articles. Neither in the SCN nor in the order impugned, the Revenue has shown the basis of calculation of value of the pattern @ 4% of the total value of the castings. On the other hand, the appellant/assessee has calculated the value as 0.0044% of the value of the steel castings on the basis of certificate issued by the Chartered Engineer and Cost Accountant.

(2.) We have gone through the certificates relied on by the appellant. While in the Order -in -Appeal, the above certificates are not accepted, no reason is given to substantiate the stand taken by the Revenue that the value of the pattern is to be calculated @ 4% of the total value of the castings. Even before this Tribunal the Revenue is not in a position to make available the basis for the calculation. Since the claim by the assessee is based on the certificate issued by the Chartered Engineer and the Cost Accountant and there is no contra material produced by the Revenue, we find no reason to sustain the impugned order. We, therefore, set aside the orders impugned and allow the appeals.