Indiatax

NEW DELHI. Larger Bench of CESTAT vide a significant ruling AIT-2008-206-CESTAT has decided the following issues related to excise valuation in case of valuation of goods for payment of excise duty when it is not a case of sale under central excise.

The following issues were decided by the Larger Bench:

(1) Whether the value of the excisable goods used for manufacture of other article, which is required to be worked out under rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, read with Rule 2( c) thereof  which are made for the purpose of Section 4(1)(b) of the Central Excise Act, 1944, will be considered to be the value of such inputs, while assessing the value of such other article manufactured by the job worker?

(2) Whether in arriving at the assessable value of the product manufactured by a job worker, the actual cost of the inputs supplied by the principal should be taken into account or the value of the inputs, as worked out under Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods ) Rules, 2000 should be taken into account?

Justice SN Jha President of CESTAT has ruled on behalf of Larger Bench that the statutorily determined value under Rule 8 would apply at all stages and for all purposes whenever the question of ascertaining the value of goods in non-sale transactions arises.   

Further, the value of chassis for the purpose of arriving at the assessable value of the complete motor vehicle shall be the assessable value of the chassis worked out by Eicher under Rule 8 of the Excise Valuation Rules, and not its actual cost.

(Click here for full text of Ruling AIT-2008-206-CESTAT)

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(Source: Allindiantaxes)