2026-VIL-1590-CESTAT-DEL-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Valuation of Goods - Amortized Value of Tools and Dies – Appellant manufactures automobile parts and accessories supplied to original equipment manufacturers; tools and dies were supplied by customers free of cost or manufactured and recovered from customers through separate invoices – Whether the entire value of tools and dies recovered by the appellant from customers should be included in the assessable value of the final products or only the amortized value should be included under Rule 6 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 – HELD – The final products cannot be manufactured without the tools and dies and their value should be included in the assessable value; however, as they are used repeatedly and not only once, the cost has to be spread over all goods manufactured using it through amortization - The amortized value alone has to be calculated and included in the assessable value and not the total value of tools and dies; the exemption under Notification No. 67/95-CE for captively used goods does not apply as the appellant sold the tools and dies under separate invoices and then used them within the factory premises - The extended period of limitation was correctly invoked as the appellant was fully aware that amortized value needs to be included since it followed this practice in other cases and no bonafide belief existed. The matter is remanded to the original authority to recompute the demand of duty by reckoning the amortized value of tools and dies and correspondingly recompute interest and penalty – Appeal allowed by way of remand to the original authority
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