2004 (7) TMI 569

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....Hidayatullah, Sr. Advocate with Arun Mehta, Advocate, for the Appellant. S/Shri M.K. Gupta, Jt. CDR with Ajay Saxena, SDR, for the Respondent. [Order per : Jyoti Balasundaram, Member (J)]. - The appellants herein are engaged in the manufacture of grey fabrics sent for processing to various processing units viz. Oceana Textile Mills Pvt. Ltd., M/s. Mazda Fabrics Processors Pvt. Ltd. and M/....

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....per the formula laid down by Supreme Court in the case of Ujagar Prints [1988 (38) E.L.T. 535 (S.C.)] (cost of grey fabrics + job work charges + job worker's profit). On this basis, show cause notice proposing recovery of additional Central Excise Duty leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 of Rs. 1,11,05,247/- and proposing imposition of penalty upo....

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....the appellants' name and whenever the grey fabrics were received from 3rd parties, the names of the 3rd parties were shown. In those price lists, the appellants have adopted the Ujagar Prints formula for valuation. All the price lists were finally approved. If the department was of the view that valuation could not be done on the basis of Ujagar Prints formula in respect of their own grey fabrics,....

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....ers. This, to our minds, indicates that even the Excise authorities were of the view that the costing method (Ujagar Prints formula) was to be followed for valuation of the appellants' own fabrics. Further, all the records of the appellants were audited and no objection has been recorded by the Audit Team as regards the method of valuation in the case of appellants' own fabrics. The only objection....