2005 (7) TMI 486

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....0/- is raised in 12 show cause notices). 2.None appears for the appellants in spite of notice. Notice was also sent to their advocates who had withdrawn from the case as seen from letter dated 11-7-2005. Hence, we heard the ld. SDR and perused the records. The issue for determination is as to what are the manufacturing expenses and manufacturing profits which are to be included in the assessable value, besides Value of grey cloth and value of job work done, in respect of fabrics processed on job work basis. The assessable value of the fabrics will be the sum total of - (i) value of the grey cloth at the hands of the processor, (ii) value of the job work done, (iii) manufacturing expenses, and (iv) manufacturing profit. The appellants ....

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.... the fabrics suppliers, must be included. The appellants contentions that job charges include manufacturing profits and expenses meaning thereby that there are no other manufacturing expenses and manufacturing profit to be included in assessable values, are in gross mis-conception of the law and facts. The job charges/chargeable and recovered represents the only element viz. the value of the job work done. Manufacturing expenses, whatever these may be, as meant by the Hon'ble S.C. are quite different from expenses included in the job charges. The manufacturing profit is the profit that would accrue if the processed fabrics are sold at the processors factory, and the same cannot be equated to processors profit forming part of the job charges....