2009 (6) TMI 744

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.... payment of duty. The department contended that they should have added margin of profit of 15% or 10%, as the case may be, as per rules to the cost of production and accordingly show cause notices were issued and Original Adjudicating Authority confirmed the demands with interest as applicable holding that the appellants were required to add profit margin to the value adopted by them and also imposed amount equal to duty as penalty. On an appeal filed by them, Commissioner (Appeals) remanded the matter to the Original Adjudicating Authority with the following observations : "In the impugned order it is held that the goods in question are not being sold by the assessee but are being cleared to themselves. To that extent the condition of R....

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....ppeal is thus liable to be allowed by way of remand. Under the circumstances as discussed in forgoing para, the matter is remanded back to the adjudicating authority for de novo adjudication after verification of appellants' claim on the sale of the identical goods of independent buyers. The appellants will provide all the information to substantiate their claim for assessment under Rule 4 of the Valuation Rules. The adjudicating authority is also required to examine the other points raised by the appellants. Needless to mention that principle of natural justice should be adhered to while deciding the case. While remanding back the case, decisions of Hon'ble Gujarat High Court in the case of CCE, Ahmedabad-I v. M/s. Medico Labs reported ....

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....mand, stay petitions are infructuous and accordingly are dismissed. Since both the sides have no objection, appeals themselves are taken up for decision. There is no dispute that assessment on the basis of cost of production plus profit margin cannot be made applicable to the case of the applicants. Naturally the question will arise as to how the goods cleared by the appellants have to be assessed. The appellants are engaged in the manufacture of packing materials and in some cases they themselves do the packing also. In effect they are engaged in providing packing solution. Sometimes they also sell the packing materials. Further, they also transfer packing materials to their sister unit. The dispute has arisen in the case of packing materi....