LIGHT METAL INDUSTRIES Vs. CCE

JUDGEMENT

(1.) THE present appeal is against the Order dt. 12.5.1997 of the Commissioner (Appeals), vide which he has upheld the Order of the Assistant Commissioner enhancing the assessable value of the goods.

(2.) THE undisputed facts on record are as under:

(3.) WE have carefully considered the submissions of both the sides and have gone through the impugned Orders. In the case of Ujagar Prints v. Union of India reported in 1989 (39) ELT 493 (SC) : 1989 (21) ECR 1 (SC) : ECR C 1347 SC, the Hon'ble Supreme Court had laid down the guidelines for arriving at the assessable value of the goods manufactured on job work basis which has to include cost of materials, processing charges and profit of the processor. As rightly observed by the Collector (Appeals), the said judgement does not lay down as to whether the duty element paid on inputs of which Modvat credit has been availed, has to be added in the assessable value of the final product or not. The said issue has been decided by the Larger Bench decision of the Tribunal in the Dai Ichi Karkaria's case referred supra. It has been held in the said decision that duty paid on input in 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 Act read with 159 Rule 6(b)(ii) of the Valuation Rules. The basis for arriving at the above finding" have been summarised by the Tribunal in the case of Commissioner of Central Excise, Bangalore v. Narendra Co. (P) Ltd. reported in 1998 (26) RLT 186 (T) : 1998 (77) ECR160 (T), as under: