1997 (8) TMI 173

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....ertake on grey fabrics supplied by their customers. The jurisdictional Asstt. Commissioner of Central Excise ordered provisional assessment on the ground that the price list filed by the respondents did not include trader's profit of merchant manufacturers which according to the Asstt. Commissioner was required to be added to the assessable value of the processed fabrics. The respondents challenged this before the Gujarat High Court and the High Court disposed of the Civil Application by its order dated 20-2-1990 with the observation that the Asstt. Commissioner should finalise the assessments taking into consideration relevant decisions on the point including the Supreme Court judgment in the case of Ujagar Prints v. Union of India - 1988 ....

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....ter stands settled against the Department in precedent Tribunal decisions - Order No. 1725/97-WZB, dated 28-4-1997 disposes of identical issue by following Supreme Court decision in Ujagar Prints (supra) and two other Tribunal decisions, one in the case of Commisioner v. Super Laminates - 1996 (88) E.L.T. 255 (Tribunal) = 1996 (17) RLT 347 and also in the case Navgujarat Packaging v. Commissioner - 1996 (83) E.L.T. 450. The ratio of these decisions is that what the Asstt. Commissioner had done in such cases was to include an extra percentage of profit on charges which already include the processor's profit element, which, the Tribunal held to be impermissible. Applying the ratio of the above decisions to the facts of the present case which ....

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....at the cost of the grey cloth fabric which was taken by the appellant should be added by the appellant. In this view of the matter, the Collector (Appeals) has correctly decided the matter." The decision is also one where the assessee's appeal has been dismissed. Therefore, this decision does not really advance the case of the appellant's herein. It is therefore held that the Asstt. Commissioner's order that assessable value should include shrinkage is in consonance with the law laid down by the Supreme Court in Ujagar Prints case (supra) and hence the Commissioner (Appeals) finding contra is unsustainable. 6. In respect of Assistant Commissioner's order for adding 1% incidental charges/interest charges, we are in agreement with ....