#Valuation of Goods

Supreme Court ruled the Central Excise Department cannot invoke the proviso to Section 11A to reopen assessments without a specific allegation of wilful suppression of valuation. The decision curtails the department’s ability to extend the limitation period, shielding job-work vehicle manufacturers from retrospective tax claims.

CESTAT Chennai rules that job-worked goods consumed by the principal manufacturer are exempt from Rule 8 of the Central Excise Valuation Rules, which mandates 110% cost-based valuation. The tribunal affirms valuation based solely on material and conversion costs, providing relief to job workers and principal manufacturers from additional duty liabilities.