Cost of Parts Supplied by Principal Manufacturer not Part of Job Worker’s Assessable Value: CESTAT

The CESTAT ruled that the cost of parts supplied by a principal manufacturer is not part of the assessable value in the case of a job worker. In this instance, a job worker supplied certain parts to a principal manufacturer for assembling goods. The Tribunal concluded that the cost of parts is not a part of the job worker’s value for excise purposes, as these parts are not a direct input in the final product's production. Therefore, the inclusion of these parts in the value of goods for excise purposes is unwarranted, and the decision to exclude them from the assessable value was upheld.