COMMERCIAL ENGG. BODY BUILDERS Vs. CCE

JUDGEMENT

(1.) Appellants herein were undertaking job work of fabrication of vehicle body on duty paid chassis supplied by M/s. TELCO. Duty demands were confirmed against them by adopting the price at which built up vehicles were sold by Telco from its Depots to customers and penalties were also imposed upon them. Hence, these appeals.

(2.) Details of duties and penalties are set out in the Annexure to this order.

(3.) We have heard both sides. Appellants rely upon Board's Circular No. 251/85/96 -CX dated 14.10.96 to support their contention that they are liable to pay duty on the basis of cost of manufacture plus notional profit and also upon Tribunal's decision in IPF Vikram India Ltd. 2003 (160) ELT 1017, wherein, applying the circular, it has been held that if an "independent job worker processes goods and returns this to their supplier, the prescription of other "places of removal" will not make any difference and for such goods the valuation can be done on the basis of price of comparable goods under Rule 6(b)(i) or failing that, under Rule 6(b)(ii) of the Valuation Rules on the basis of cost of manufacture plus notional profit in order to arrive at the nearest ascertainable equivalent of the price (as stipulated under Section 4(1)(a)..."