CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL BANGALORE REGIONAL BENCH - COURT NO. 2 Central Excise Appeal No. 20057 of 2018 (Arising out of Order-in-Appeal No. 356/2017 CT dated 24.10.2017 passed by the Commissioner of Central Tax (Appeals – II), Bangalore.)

M/s. Skanda Machine Tools Private Limited

46, 4^th Main, 3^rd Phase, Peenya Industrial Area, Peenya, Bengaluru – 560 058. ……….Appellant(s)

VERSUS Commissioner of Central Tax, North West Commissionerate, Bengaluru. ……..Respondent(s)

APPEARANCE:

Mr. Prateek. M, Chartered Accountant (CA) for the Appellant.

Mr. Vinod Kumar Garhwal, Superintendent (AR) for the Respondent.

CORAM:

HON'BLE MR. P.A. AUGUSTIAN, MEMBER (JUDICIAL)

HON'BLE MR. PULLELA NAGESWARA RAO, MEMBER (TECHNICAL)

Final Order No. 20563 /2026 Date of Hearing: 29.10.2025 Date of Decision: 23.04.2026 PER: P.A. AUGUSTIAN The issue in the present appeal is while manufacturing intermediate products, if Appellant received the goods from the customer as a job worker, whether the Appellant is liable to include the cost of such free supply of goods in the assessable value.

2. The brief facts are on scrutiny of the documents, it is observed that for the period from August, 2010 to August,