Commissioner of Central Excise Vs. Ujwal Metals Pvt. Ltd. - Court Judgment

Excerpt:
1. the question for consideration in this appeal is the includability in the assessable value of the goods manufactured by the respondent on job work of the excise duty paid on coils of iron supplied by the customer, which it worked upon to make the finished product. relying upon the decision of the tribunal in dia ichi karkaria vs. cce 1996 (12) rlt 261 the commissioner (appeals) has held that since the duty was available to be taken as modvat credit by the manufacturer, it would not be includable in the assessable value.2. the sole ground in the department's appeal to challenge this conclusion is that the it does not accept the correctness of this decision. the supreme court has declined to reverse the decision of the tribunal and, in its judgment in 1999 (112) elt 353, dismissed the department's appeal against it. there is no ground for interference.

Judgment:
1. The question for consideration in this appeal is the includability in the assessable value of the goods manufactured by the respondent on job work of the excise duty paid on coils of iron supplied by the customer, which it worked upon to make the finished product. Relying upon the decision of the Tribunal in Dia Ichi Karkaria vs. CCE 1996 (12) RLT 261 the Commissioner (Appeals) has held that since the duty was available to be taken as modvat credit by the manufacturer, it would not be includable in the assessable value.

2. The sole ground in the department's appeal to challenge this conclusion is that the it does not accept the correctness of this decision. The Supreme Court has declined to reverse the decision of the Tribunal and, in its judgment in 1999 (112) ELT 353, dismissed the department's appeal against it. There is no ground for interference.