2000 (9) TMI 106

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....ob workers. M/s. Sangam India Ltd. & M/s. Sangam Suitings were getting their grey fabrics processed through M/s. Sangam Processors (Bhilwara) Ltd. The traders, namely, Sangam India Ltd. & Sangam Suitings were declaring the value of the grey fabrics sent to Sangam Processors (Bhilwara) Ltd. for job work. On the basis of the declaration of the value given by the Sangam India Ltd. and Sangam Suitings, Sangam Processors (Bhilwara) Ltd. paid excise duty. The duty so paid by the job worker was found to be not correctly assessed on the value of the fabrics supplied by the traders. The case of the Department was that the job worker was not showing the actual value of grey fabrics. This conclusion was taken by the Department on the basis that the ac....

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....excise duty would be charged to the processor on that basis provided that the declaration as to the price at which he would be selling the processed goods in the market, would include only the price or deemed price at which the processed fabric would leave the processor's factory plus his profit. Rule 174 of the Central Excise Rules, 1944 enjoins that when goods owned by one person are manufactured by another the information is required relating to the price at which the said manufacturer is selling the said goods and the person so authorised agrees to discharge all the liabilities under the said Act and the rules made thereunder. The price at which he is selling the goods must be the value of the grey-cloth or fabric plus the value of the ....

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.... support the impugned order on the basis of the document at page 511 to 513 of the paper book. Page 511 is the proforma for declaring assessable value of excisable goods filed in terms of Rule 173 C of the Rules. The selling price of the fabric as given by the Trader was shown as Rs. 51.50. The break-up of the selling price (page 512) contains the break-up of whole-sale selling price. The whole-sale selling price shown therein is Rs. 57/-. It took in Rs. 5.50 towards other expenses and profit. The other expense and profit amounting to Rs. 5.50 mentioned therein were the other expense and profit of the trader. By adding that too the rate per meter mentioned in page 511, the total comes to Rs. 57. Cost sheet seen at page 513 is an elaboration....