THIRD MEMBER ON REFERENCE : SHRI P.C. JAIN, VICE PRESIDENT LIGHT METAL INDUSTRIES Vs. COMMISSIONER OF C. EX., CALCUTTA-IV

JUDGEMENT

(1.) THE present appeal is against the Order dated 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: - The appellant is engaged in the manufacture of aluminium sheets out of aluminium ingots supplied by their customers on job work basis. The issue required for determination is the correct assessable value of the aluminium sheets. Both sides agree that the provisions of Rule 6 (b) (i) of the Central Excise Valuation Rules are not applicable, as the goods are not being consumed captively and as such, the assessable value has to be arrived at on the basis of cost structure in terms of Rule 6 (b) (ii) of the said rules. Accordingly, price list in Part VII was filed by the appellant claiming the assessable value on the basis of cost of raw material and the job charges received by them from the suppliers of the raw material. The appellants were issued a show cause notice dated 14 -1 -1992 alleging that the appellant had declared reduced assessable value inasmuch as the duty paid on the inputs have not been taken into account, while adding the cost of inputs in the value of the final product. Accordingly, notice proposed to enhance the assessable value and recover the differential duties, allegedly short paid on this count.

(3.) WE have heard Shri Bhaskar Gupta, ld. Advocate for the appellants and Shri N.C. Roy Chowdhary, ld. Sr. Advocate along with Shri P. Mookerjee, Advocate for the Revenue.