Job-work valuation follows Ujjagar Prints: assessable value uses raw material cost, job charges and profit, not depot sale price.

For goods manufactured on job-work basis from raw materials supplied by the principal, assessable value is to be determined under the Ujjagar Prints principle: cost of raw materials at the job-worker's premises plus job charges plus the job worker's profit. The principal's depot sale price is not the proper basis unless the job-worker and the owner are related persons, and no such relationship was alleged here. Because duty had been worked out on the principal's ex-factory price instead of the correct job-work valuation, the valuation had to be re-determined and the matter remanded for fresh assessment.

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Issues: Whether the assessable value of goods manufactured on job work basis for the principal manufacturer was to be determined on the basis of the principal's depot sale price, or on the basis of the cost of raw material plus job charges and job worker's profit, and whether the duty demand required fresh determination of value.

Analysis: The goods were manufactured on job work basis from raw material supplied by the principal and were cleared to the principal's depots or customers as directed by the principal. In such a case, the assessable value is governed by the principle laid down in Ujjagar Prints, namely cost of raw materials at the job-worker's premises plus job charges plus the job worker's profit. The principal's sale price can be adopted only where the job-worker and the owner are related persons, and no such allegation existed here. Since duty had been paid on the principal's ex-factory price instead of the correct assessable value, the valuation required fresh determination.

Conclusion: The depot sale price of the principal could not be adopted as the assessable value, and the matter had to be remanded for re-determination of value in accordance with the Ujjagar Prints principle.

Final Conclusion: The valuation adopted in the impugned order was unsustainable, and the dispute was sent back to the original authority for fresh assessment on the correct job-work basis.

Ratio Decidendi: For goods manufactured on job work basis, assessable value is ordinarily the cost of raw materials plus job charges plus job worker's profit, and the owner's sale price is not the basis unless the parties are related.

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