A
COMMISSIONER OF CENTRAL EXCISE, PUNE
v.
M/S. KRIPA CHEMICALS PVT. LTD.
4 NOVEMBER, 2004
B
[ARIJIT PASAYAT AND C.K. THAKKER, JJ.]
Central Excise Rules, 1944:
Modavt-Cost of production-Held, excise duty on raw material. if
C modvaued is not to be included in determining cost of production of excisable
products.
D
.E
F
_Collector of Central facise, Pune v. Daiichi Karkaria limited, (1999)
112 EL T 353 SC, relied on.
Central Excise Act, 1944:
Excisable product-Valuation-Job work-profit earned by job worker-
Held, value of raw material, value of the job work done and the manufacturing
profit and the expenses for the processing have to be taken into consideration.
UjagG1: Prints etc. etc. v. Union of India and Ors .. (1989) 39 EL T 493
SC, relied on.
CIVIL APPELLATE JURISDICTION
Civil Appeal No. 5000 of
1999.
From the Judgment and Order dated I 0.5.99 of the Central Excise
Customs and Gold (Control) Appellate Tribunal, Bombay in A.No.E/1719/
94-A in F.0.No. C-I/930/WZB/1999.
Mohan Parasaran, Additional Solicitor General and B. Krishna Prasad
G with him for the Appellant.
C.N. Sree Kumar and Ms. M.L. Shyjatha for the Respondents.
The Judgment of the Court was delivered by
H
970
COMMIR. OF CENTRAL EXCISE v. KRIPA CHEMICALS PVT. LTD. (PASAYAT, J.] 971
ARIJIT PASAYAT, J. Heard.
This appeal involves two issues. One of them relates to the calculation
of cost of production and whether excise duty paid on raw material, if
modvatted, is to be included. in determining the cost of production of excisable
products. This issue has been examined by this Court by a three Judge Bench
A
in Collector of Central Excise, Pune v. Daiichi Karkaria Limited (1999) 112 B
353 SC and it was held that excise duty paid on raw material, if modvatted,
is not to be included in determining the cost of production of excisable
products. The other issue raised is the question as to whether profit earned
by the job worker is to be included and to what extent? In the clarificatory
order passed by this Court in Ujagar Prints etc. etc. v. Union of India and C
Ors., (l 989) 39 EL T 493 SC, it was explained by way of an illustration that
the value of the raw material, the value of the job work done and the
manufacturing profit and the expenses for the processing have to be taken
into consideration. The determination of the excisable value shall be done on
that basis. The appeal is, accordingly, disposed of.
R.P.
Appeal disposed of.
D
;_
Lex