2005 (8) TMI 489 - AT - Central Excise

Summary

Issues: Valuation of trade samples of textile for free distribution to prospective customers.

In this case, the appellant argues that trade samples with a length of less than 50 Cms. should be considered as fents, and the declared value for fents should be the basis for assessment. On the other hand, the department contends that these trade samples should be treated as fabrics made from standard length materials, and the proportionate value of standard fabrics should be applied. The Tribunal notes conflicting decisions on this matter, with some cases equating trade samples to fents and rags, while others suggest adopting the value of good quality fabrics. Due to the inconsistency in decisions, the Tribunal decides to refer the issue to a Larger Bench for resolution. The President of CESTAT is requested to constitute a Larger Bench to address the valuation of textile trade samples, aiming to resolve the conflicting interpretations and establish a consistent approach in such cases.