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2005 (1) TMI 130
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....ration to arrive at the assessable value while the assessee is of the view that assessable value of processed fabrics is to be arrived at taking into consideration the shrunk fabrics as emerged after processing. 3. The issue was referred to the Larger Bench in view of the conflicting decision of the Tribunal in the case of Gemini Dyeing & Printing Mills Ltd. v. Commissioner of Central Excise, Bangalore, reported in 1997 (91) E.L.T. 195 (Tribunal) and in the case of Indian Rayon & Indus. Ltd. v. Commissioner of Central Excise, Calcutta-IV, reported in 2002 (150) E.L.T. 388 (Tri. - Kolkata). 4. The contention is that during processing of fabrics, due to shrinkage there is some difference in the length of fabrics, which was received for ....
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....rt in the case of Ujagar Prints, Etc. Etc. v. Union of India (Supra), the Hon'ble Supreme Court held as under : "In the aforesaid view of the law and for the reasons mentioned by my learned brother, I agree with his answer to this contention. The assessable value would, therefore, include the value of the grey-cloth in the hands of the processors plus the value of the job work done plus manufacturing profits and manufacturing expenses whatever would be included in the price at the factory gate. The correct assessable value must be the value of the fabric at the factory gate, that is to say, the value at which the manufactured goods leave the factory and enter the main stream." 7. Further, the Hon'ble Supreme Court in the....
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....s (Supra) the Tribunal held as under : "I do not find any merit in the above contention since the observation of the Supreme Court as quoted above would make it clear that the selling price as declared by the trader would include only the price or deemed price at which the processed fabric would leave the factory plus his profit. Therefore, the price of the fabric at the point of its leaving the processor's factory is a relevant factory. While computing the deemed price at the processor's factory gate the value of the grey clothes handed over to the processor has necessarily to be taken into consideration. This is clear from the illustration given in the reference order and which was again quoted in the clarificatory order ....