2004 INSC 1237
                                    SUPREME COURT OF INDIA

                                 Commissioner of Central Excise, Pune

                                                      Vs.

                                 M/s. Kripa Chemicals Private Limited

                                            C.A.No.5000 of 1999

                                  (Arijit Pasayat and C.K.Thakker JJ.)

                                                 04.11.2004

                                                   ORDER

1. Heard.

2. 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 in Collector of Central Excise, Pune vs. Daiichi Karkaria
Limited SC) and the 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 the 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. vs.
Union of India and Ors.1, 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.

11989 (39) ELT 493 SC

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