2003 (11) TMI 73 - SCH - Central Excise

Valuation (Central Excise) - Job work - whether the assessable value should include the value of the grey cloth in the hands of the processor - Held that - the value of the job work done and manufacturing expenses of the processor and his profit or the value of the grey cloth in hands of the processor should refer to the value of the full metre length of grey fabrics received by the processor from his customer and not the cost of grey fabrics in the hands of the processor - None of the authorities has considered that the appellant had no opportunity to put forth his case in this regard - Matter remanded back - Decided in favour of assessee.

Summary

The Supreme Court of India issued an order regarding a show cause notice by the Assistant Collector of Central Excise, Surat to the appellant for products manufactured on behalf of merchant manufacturers. The assessing authority did not consider certain factors, so the Court set aside the order and remitted the matter for fresh consideration, allowing the appeal. The appellant was directed to appear before the authority within four weeks to file objections.