Cost of Parts Supplied by Principal Manufacturer Excluded from Job Worker’s Assessable Value: CESTAT

The CESTAT ruled that cost parts supplied by a principal manufacturer are excluded from the assessable value of job workers. In this case, the principal manufacturer supplied parts to a job worker for assembly, but the tax authorities included these parts in the job worker’s assessable value. The tribunal disagreed, stating that parts supplied by the principal should not be included in the assessable value, as they were not part of the job worker’s processing. This ruling clarifies the application of excise duties on job workers and the valuation of goods in such arrangements, reducing unnecessary tax burdens.