1993 (2) TMI 176 - AT - Central Excise

Summary

Issues:
1. Interpretation of the main judgment of the Hon'ble Supreme Court in the case of Ujagar Prints Etc. v. Union of India and Others.
2. Whether the trader's profit can be included in the assessable value.
3. Application of clarificatory orders passed by the Hon'ble Supreme Court.
4. Consideration of previous decisions by the Gujarat High Court and the Tribunal on the inclusion of trader's profit in the assessable value.

Analysis:

1. The Collector of Central Excise, Surat filed appeals against the Order passed by the Collector of Central Excise (Appeals). The issue involved was common, and the appeals were disposed of collectively. The Appellant argued that the Collector (Appeals) did not consider the main judgment of the Hon'ble Supreme Court in the case of Ujagar Prints Etc. v. Union of India and Others, which provided clarifications. The Respondent contended that the trader's profit should not be included in the assessable value, citing previous decisions of the Gujarat High Court and a later Supreme Court decision.

2. The Tribunal reviewed the main judgment of the Hon'ble Supreme Court in the case of Ujagar Prints Etc. v. Union of India and Others, along with the clarificatory orders. The judgment emphasized that the assessable value should include the processor's expenses, costs, charges, and profit, but not the trader's profits as they are considered post-manufacturing profits. This principle was reiterated in decisions by the Gujarat High Court and the Tribunal in similar cases.

3. The Tribunal considered the clarifications provided by the Hon'ble Supreme Court and the consistent interpretation by the Gujarat High Court and the Tribunal in past cases. The Respondent's argument that the trader's profit should not be part of the assessable value was supported by legal precedents and the understanding that post-manufacturing profits should not be included in the valuation for excise duty purposes.

4. Based on the analysis of the legal principles established by the Hon'ble Supreme Court, the Gujarat High Court, and previous Tribunal decisions, the Tribunal found no merit in the Revenue's appeals. Consequently, both appeals were dismissed, affirming the position that trader's profit should not be included in the assessable value for the calculation of excise duty.

This detailed analysis of the judgment highlights the key legal issues, arguments presented by both parties, and the Tribunal's decision based on established legal principles and precedents.