S.V. Steel and Vessel Vs. Collector of Central Excise - Court Judgment

Excerpt:

1. to what extent the profit is to be added to the assessable value is an issue to be considered in this case.2. both the authorities below have taken not only the cost of raw materials supplied by the supplier but added 10% on cost of raw material plus labour charges. the assessee has come in appeal on the ground that 10%. on labour charges cannot be added. they have no objection for [adding] 10% on cost of raw materials.3. when the matter was posted for hearing none appeared on behalf of the appellants. however, they have requested to decide the case on merits. accordingly, we heard shri srivastava, learned dr for the revenue.4. it is settled position that in case of job worker 10% on labour charges cannot be added since job charge is inclusive of profit. in the facts and circumstances, we accept the contention of the assessees and, accordingly, the appeal is allowed deleting 10% on labour charges.

Judgment:

1. To what extent the profit is to be added to the assessable value is an issue to be considered in this case.

2. Both the authorities below have taken not only the cost of raw materials supplied by the Supplier but added 10% on cost of raw material plus labour charges. The assessee has come in appeal on the ground that 10%. on labour charges cannot be added. They have no objection for [adding] 10% on cost of raw materials.

3. When the matter was posted for hearing none appeared on behalf of the appellants. However, they have requested to decide the case on merits. Accordingly, we heard Shri Srivastava, learned DR for the Revenue.

4. It is settled position that in case of job worker 10% on labour charges cannot be added since job charge is inclusive of profit. In the facts and circumstances, we accept the contention of the assessees and, accordingly, the appeal is allowed deleting 10% on labour charges.