2002 (2) TMI 181

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....demand is that the assessable value of the captively consumed yarn should have been fixed based on its cost of production and not the sale price of the goods. As against the above findings on short levy in the impugned order, the appellant's contention is that the original assessments and duty paid were correct and no short levy had taken place. It has been explained that the appellant disposed of the grey yarn manufactured by them in 3 ways, i.e. sale to independent purchasers, sale to independent purchasers who entrusted the yarn purchased by them to the appellant for dyeing on job work basis and captive consumption in the manufacture of dyed yarn. The appellant submits that in terms of Section 4(1)(a) of the Central Excise Act, value of ....

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.... case since the goods were being sold to independent wholesale buyers, this comparable price should constitute the assessable value and not cost of production. He has relied on the decisions of this Tribunal reported in 1996 (82) E.L.T. 574, 1996 (88) E.L.T. 574, 1998 (102) E.L.T. 373, 1999 (105) E.L.T. 71, 2000 (124) E.L.T. 457 in support of this submission. Ld. Sr. Counsel also pointed out that the Adjudicating Authority was in error in holding that the appellant was not selling the goods to buyers other than those who entrusted the grey yarn bought by them for further dyeing. It is submitted that details of yarn sold to independent buyers (other than those who entrusted dyeing work with them) was submitted during the adjudication proceed....