Valuation of trade samples must reflect an intermediate value, with deduction from standard fabrics, not treatment as fents and rags.

Trade samples made from fine or standard quality cloth could not be valued on the same basis as fents and rags because they were not comparable in quality or use. At the same time, because they were not of standard length and were not fit for use as regular fabric, their assessable value also could not be fixed at the full value of standard fabrics. The proper approach was to determine an intermediate assessable value by reference to standard fabrics with an appropriate deduction. The impugned valuation orders were set aside and the matter was remanded for fresh valuation on that basis.

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Issues: Whether trade samples made out of fine or standard quality cloth could be valued at the same level as fents and rags, and if not, how their assessable value was to be determined.

Analysis: The samples were not comparable to fents and rags because they were manufactured from fine or standard quality cloth. At the same time, they were not of standard length and could not be used in the same manner as regular fabrics. Their value, therefore, could not be pegged either to fents and rags or to full-length standard fabrics and had to be fixed at an intermediate level with appropriate deduction from the value of standard fabrics.

Conclusion: The impugned orders were set aside and the matter was remanded to the original authority for fresh valuation of the samples after allowing appropriate deduction from the value of standard fabrics.

Final Conclusion: The appeal succeeded to the extent of remand, and the assessable value of the samples is to be redetermined afresh by the original authority.

Ratio Decidendi: Trade samples manufactured from fine quality cloth cannot be valued as fents and rags when they are not of standard length and are not fit for use as regular fabrics; their assessable value must be determined with reference to standard fabrics, allowing suitable deduction.

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