TaxTMI 
TaxTMI 
2000 (7) TMI 422
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....nting to Rs. 5,44,076/-. 2  Vide their clarificatory order reproduced in 1988 (38) E.L.T. 535 in the case of Ujagar Prints etc. etc. v. UOI & Ors. the Supreme Court held "the assessable value of the processed fabrics is declared to be the value of the grey cloth in the hands of the processor plus the value of the job worker plus manufacturing profit and manufacturing expenses whatever these may be ....". 3. Three show cause notices were issued to the appellants covering the period May, 1992 to February, 1993. These show cause notices were identically worded. The allegation was that in the various price-lists filed by them the element of manufacturing expenses and manufacturing profit were not added to the assessable value. The a....
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....to the value of the fabrics will be a reasonable addition to cover the manufacturing expenses and the manufacturing profit." On these observations he confirmed the demands. It is significant to note that because he could not determine the manufacturing expenses allegedly not added in computing the assessable value, he contended himself by adding another quantum of 10% to the assessable value. Equally significant is the fact that in the price lists relating to this period the assessees have a specific claim that the job charges did include manufacturing expenses and profits. In addition to that the assessees had on their own added notional profit, albeit under protest. It would thus appear that the interpretation later made by the Assistant....
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....he profit margin year-wise and confirmed the surviving demand. Shri Viswanathan submits that in spite of the variations which took place in the percentage of profit the demands confirmed were raised in the show cause notices. 7. The assesssees once again filed an appeal. In the impugned order the Commissioner (Appeals) amplified the scope of the phrase "manufacturing expenses". Relevant paragraphs in his order read as below : "8. The points arising for determination here are as to what are the manufacturing expenses and manufacturing profits which are includible in the assessable values, besides values of the grey cloth and value of the job work done, in respect of fabrics processed on job work basis. 9.1 Undisputedly, ass....
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....ufacturing profit i.e. profit that would have been normally earned/accrued on the processed fabrics, if they were sold at the processor's factory-gate; Thus beside value of the grey fab­rics, at the hands of job worker, and job-charges the said two elements viz. manufacturing expenses whatever those may be till processed fabrics leave the processors factory and manufacturing profits accruable in event of sale of goods at processor's factory, are includible in the assessable values." In paragraph 12 of his order he justified the action of the Assistant Collector. He upheld the lower order in toto. Hence the present appeal. 8. As we have observed above, the show cause notice did not spell out the grounds which have now been suppli....