SKYLINE INDUS. PVT. LTD. Vs. CCE, INDORE

JUDGEMENT

(1.) THE Additional Collector in the impugned order -in -original held that the conversion charges quoted by the notice is dependent upon the amount of Modvat of the inputs; that in ordinary case, the conversion charges should solely depend upon the labour put in by the notice; that it is not true in the present case; that here labour plus the reasonable profit does not represent the sole consideration in determining the conversion charges; that in such an event, the Modvat deducted from it is liable to be added. The Learned Additional Collector confirmed the demand of Rs. 88,850.78. Being aggrieved by this order the appellants have filed the captioned appeal. The facts leading to present appeal are that the appellants are engaged in the manufacture of ACSR. For manufacture of ACSR they procure aluminium rods. On procurement of duty paid aluminium rods the appellants took Modvat Credit on duty paid on rods and availed the same for payment of duty on ACSR. The department alleged that for determining the assessable value of ACSR Excise duty paid on aluminium rods should be included for determining the assessable value of the ACSR and accordingly, they confirmed the demand.

(2.) SHRI Suman Kamani, Managing Director assisted by Shri R.K. Misra, Assistant Manager submitted that their case was fully covered by the decision of this Tribunal in the case of Daiichi Karkaria Ltd., v. Collector of Central Excise, reported in : 1996 (81) ELT 676 :, 1996 (63) ECR 23 (T), wherein the Tribunal held that duty paid on inputs with regard to which Modvat Credit is availed of by a manufacturer is not includible in the assessable value of the final product under Section 4(1)(b) of the Central Excises and Salt Act, 1944 and Rule 6(b)(ii) of Central Excise Valuation Rules, 1975. It was therefore, requested by them that the appeal may be allowed.

(3.) HEARD the submissions, perused the evidence on record as well as the case law cited and relied upon. In the instant case, the issue was whether Modvat Credit of duty paid on aluminium rods taken as credit and utilised for payment of duty on ACSR was includible in the assessable value of ACSR or not? We note that identical situation was dealt with by the Larger Bench of this Tribunal in the case cited and relied upon by the appellants. In that case, in para 20 the Tribunal held as under: - -