2007 (6) TMI 483 - AT - Central Excise

Summary

Issues: Valuation of captively consumed polyester texturised yarn for the manufacture of polyester twisted yarn.

The judgment deals with the dispute regarding the valuation of polyester texturised yarn consumed captively by the appellant for manufacturing polyester twisted yarn. The Revenue adopted the same value for both captively consumed yarn and yarn cleared for home consumption under Rule 6(b)(1) of Central Excise (Valuation) Rules, 1975. The appellant argued that certain adjustments should be allowed under the rule, such as deducting costs like packing, transportation, labor charges, etc., from the sale price to determine the correct value of captively consumed yarn.

Upon considering both sides' arguments, the Tribunal referred to a previous decision in the case of Reliance Industries Ltd. v. CCE, Mumbai, where it was held that expenses incurred on packing for cleared goods should not be included in the assessable value of captively consumed goods. Following this precedent, the Tribunal set aside the impugned order and allowed the appeal, providing consequential relief to the appellant.

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