- (1.) Revenue is aggrieved against the order passed by the Customs, Excise & Gold (Control) Appellate Tribunal (for short, the Tribunal ) whereby and whereunder the Tribunal has reversed the order-in-original passed by the Commissioner of Central Excise holding that the process followed by the Revenue from the issue of show cause notice to the determination of the liability is not based on relevant law.
(2.) M/s. MDS Switchgear Ltd., D-4, MIDC, Jalgaon (hereinafter referred to as the assessee ) and M/s. MDS Switchgear Ltd., A-2, MIDC, Malegaon Village, Sinnar (hereinafter referred to as the supplier ) are the sister concerns and are engaged in the manufacture of circuit-breakers falling under Chapter Heading No. 85 of Central Excise Tariff Act 1985. They were also availing of MODVAT facility under the Central Excise Rules, 1944 (for short, the Rules )
(3.) The assessee was receiving tripstar MCB s single pole of various configurations from their unit at Sinnar in semi-finished condition. After carrying out certain operation, they have cleared the goods at lower value than the landing cost of semi-finished received from their unit, viz., MDS Switchgear, Malegaon, Sinnar. The Revenue, after a detailed verification of record, came to the conclusion that the cost of semi-finished goods supplied by their sister concern is arrived at by adding the raw material cost, direct/indirect labour cost, average overheads, notional profit and MODVAT element. Further, the cost so arrived is rounded off to the next higher figure, i.e., for item code No. T161B06S, the cost of Rs. 56.68 has been rounded off to Rs. 60/- whereas the assessable value declared by the assessee is ranging between Rs. 45.20 to 52.47.;