TaxTMI 
TaxTMI 
2017 (10) TMI 192
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....res into the verification of the value of the goods. The above customers supplied the basic filament yarn for conversion into processed DMMF on payment of conversion charges and the filament yarn so supplied is subjected to the process of twisting, weaving and dipping in dip solution for being converted finally into DMMF. The department was of the view that the appellant has not included certain expenses/costs to arrive at the cost of the raw materials/filament yarn for discharging duty. SCN dated 17.05.1991 was issued alleging under valuation on grounds that the appellant has not included various charges like 1) warehouse rent, 2) transit insurance, 3) clearing and forwarding charges, 4) bank charges, 5) 4.5% on money locked-up on the cost of filament yarn, 6) handling charges, 7) waste accrual and 8) appropriation of sale proceeds on waste in respect of M/s. Dunlop & M/s. Nirlon. Thereafter, five separate SCNs were issued demanding total duty of Rs. 1,12,87,314.26 for the period March 1988 to September 1991. The appellants filed writ petition before the Hon'ble High Court of Madras that the OIO dated 07.06.1991 was passed without affording personal hearing or a chance to defe....
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....ssee, we set aside the orders of both the authorities and remand this case, for the last time, to the original authority for denovo adjudication of the case (a) after furnishing to the assessee a copy of the aforesaid telex message and allowing them to cross-examine a representative of the principal manufacturer (M.s, Dunlop India Ltd.), with reference to the said document, (b) after furnishing to them the break-up of assessable value with reference to the various elements included therein and (c) after givening them an effective opportunity of being heard. It is made clear that, in the event of the original authority failing to provide the assessee with a copy of the telex message for any reason whatsoever, nothing contained therein shall be relied on. 5. As the dispute is very old and has been locked up in chequered litigation for the last one and a half decades, it is necessary that the adjudication thereof cannot afford to be delayed any further. Hence, the original authority shall pass a final order within three months from the date of receipt of a certified copy of this order. The appeal stands allowed way of remand. 5. There upon pursuant to the remand by the Tribunal, the....
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....ge of M/s. Dunlop. That copy of this telex message has not been provided to the appellant till date. The Tribunal remanded the matter directing the adjudicating authority to furnish a copy of the telex message and also specifically directing that if the copy is not furnished, the said document cannot be relied at all. Though the adjudicating authority observed that the copy has not been furnished and that telex message is not being relied, in fact, the only evidence that has been relied by the department is the alleged contents of the telex message. This is clear from para-21 of the OIO dated 05.11.2007. The original authority places reliance upon the reply dated 01.12.2000 filed by the appellant in regard to the telex message. Quoting a sentence from the reply, the adjudicating authority has proceeded to wrongly conclude that the appellant has admitted that the five cost elements are overhead charges of M/s. Dunlop and is included in their value of their final products. He submitted that the first five charges shown in the above table has been included in the assessable value by the department relying upon the telex message. Since copy of the telex message has not been provided to....
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.... Vs. UOI & Others - 1988 (38) ELT 535 & 1989 (39) ELT 493, which is also reflected in the SCNs. The appellant had followed the proposition held in the Ujjagar Prints case and therefore the allegation that the entire cost element has not been included is false and baseless. 8. The Tribunal while remanding the matter had specifically directed to furnish the work sheet to the appellants. The appellant is still in the darkness as to why the department has arrived at the demand of duty since the details of the cost included and the quantification of the duty is not furnished to the appellants. To make it clear that they have complied with the Tribunal's order, the original authority has simply appended the annexure to the SCN along with the OIO. That does not give the details of the quantification of the duty demand. The Ld. Counsel thus stated that even after repeated requests and repeated remand of the case, the department has failed to furnish the basis on which they have arrived at the duty demand in the SCN, and order-in-original. That therefore, the demand is unsustainable and prayed that the same may be set aside. 9. The Ld. AR, Shri A. Cletus, ADC, defended the impugned or....
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....r hand, the appellants were able to obtain a communication from Dunlop on 24.02.2000 wherein it had been clarified that in the cost of filament yarn supplied to appellant during the material period, they had included (1) warehouse rent (2) clearing and forwarding charges (3) interest on money locked up on purchase of filament yarn (4) transit insurance and (5) LC opening charges. However, it transpired that the authorities concerned refused to take cognizance or rely upon the said letter of Dunlop. Even the request to allow cross examination of representative of M/s. Dunlop India Ltd. with reference to aforesaid telex message was turned down. In the previous order of the Tribunal dt. 16.07.2007, these aspects had been taken note of by the Tribunal as also the fact that at no stage did the authorities below provide the appellant with particulars of valuation or for a statement/worksheet containing such price. The Tribunal had also made clear that in the event of original authority failing to provide the assessee a copy of the telex message for any reason whatsoever, nothing contained therein shall be relied upon. That Final order was passed on 16.07.2007. The denovo adjudication got....