2005 (3) TMI 569 - AT - Central Excise

Summary

Issues: Valuation of MMF for different periods

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue involved is the valuation of MMF processed and cleared by the appellants for various periods. The Tribunal considered the loading proposed on values for different time frames, including Nov. 91 to Jan. 94, Jan. 94 to Mar. 94, and Apr. 94 to Dec. 95, which included factors like Octroi Shrinkage, Transportation interest, and profit margin.

Analysis:

The Tribunal noted that the Commissioner (Appeals) had already determined the valuation for the period Jan. 91 to Oct. 91 in a previous order and did not uphold the proposed loading of 12.75%. This decision had become final for the assessee, and there was no new material presented that could warrant a re-consideration of the valuation. The Tribunal emphasized that an order on valuation for the same assessee and issue for an earlier period would prevail for subsequent periods and could not be easily set aside. It was highlighted that re-valuation should be based on tangible, reliable material, which was lacking in this case, as the proposed re-valuation seemed to be based on assumptions rather than concrete evidence. The order of the Commissioner (Appeals) was criticized for not providing any additional material to support the proposed re-valuation, leading to its dismissal.

Furthermore, the Tribunal referenced a decision of the Apex Court in the case of Berger Paints India Ltd. and stated that, in line with that decision, there was no reason to differ with the earlier order of the Commissioner (Appeals) dated 20-3-97 on valuation in this assessee's case. Based on this finding, the Tribunal allowed the appeal, ordering accordingly. The judgment concluded with the pronouncement in court, indicating the final decision of the Tribunal.