2001 (5) TMI 729

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....cally bonded chrome manganese bricks out of the broken and pulverised refractory bricks/brick-bats supplied to them free of cost by M/s. IISCO. The bricks so manufactured were supplied back to M/s. IISCO. The appellants cleared the said products on payment of some duty. However, they were issued a Show-cause Notice dated 31-3-97 by the Superintendent of Central Excise, HPG Range, Asansol (Burdawan) alleging that the duty has not been paid as per the provisions of Section 4 of the Central Excise Act, 1944 inasmuch as the clearance value at which the duty had been paid did not include the value of the raw materials and accordingly, they were called upon to show cause why the differential duty amounting to Rs. 1,95,581/- on the assessable valu....

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.... only recycled bricks and no process of manufacture is involved. Learned Counsel in support of this contention, relied upon the following decisions : 1.       Century Spinning and Manufacturing Company v. U.O.I. - 1981 (8) E.L.T. 676 (Bom.) 2.       Uday Textile and Engineering Works v. C.C.E., Bombay - 1985 (21) E.L.T. 562 (T) and 3.       Kelvinator India Ltd. v. C.C.E., New Delhi - 1992 (38) ECR 194 (CEGAT-SB-B) 4. On careful consideration of the above submissions, we do not find much force in them. First of all, the appellants had themselves paid duty at the appropriate rate on the resultant product under consideration and at no st....

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....and used refractory bricks were subject to repairs. We, therefore, reject the contention of the party on this point. 5. The second point relates to the valuation of the bricks. The case of the appellants is that the inputs viz., the broken bricks and brick bats are given to them free of cost by M/s. IISCO and these are of no commercial value and no element of cost in respect of these inputs is liable to be included for the purpose of assessment of the final product for payment of duty. The case of the department is that the party had purchased the same material from M/s. Steel Alloys, Durgapur at the rate of Rs. 1000/- per M.T. and the same cost should be included for the purpose of assessment in the value of the goods under conside....