COLLECTOR OF CENTRAL EXCISE Vs. N.J. METAL SCREENS MFG. CO. LTD.
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
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S.V. Maruthi, Member (J) -
(1.) THE dispute relates to the includibility of customer's profit at 10% in the assessable value of the goods processed on job work basis by the job worker.
(2.) THE facts relevant are as follows. M/s N.J. Metal Screens (hereinafter called as respondents) manufacture perforated sheets (T.I. 68). They undertook perforation work on the material supplied by the customers: on recovery of job charges. The customers supplied raw material and after subjecting it to the process of manufacture returned the same to customers. The respondents paid duty on the value of raw material plus job charges. The show cause notice was issued proposing to recover differential duty on the ground that the respondents have not added the customer's profit on notional basis to the value on which duty was paid. The Asstt. Collector added 10% profit of the customers' and demanded a duty of Rs. 6,179.93. On Appeal, the Collector set aside the order of the Asstt. Collector. Hence, the department has come up in appeal before us.
(3.) IT is now settled by the judgment of the Hon'ble Supreme Court in Ujagar Prints reported in 1989 (39) E.L.T. 493 (SC) : 1989 (21) ECR 1 (S.C.) : ECR C 1347 SC that "assessable value" to include cost of raw material processing charges and profit of processor but traders'profit (Customer's profit who got the goods processed) not includible being post -manufacturing profit. Admittedly, the Asstt. Collector added the customers' profit to the assessable value of the goods processed by the respondents. In view of the above judgment of the Supreme Court we do not see any reason to interfere with the order of the Collector. We dismiss the appeal of the department accordingly.;
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