2001 (6) TMI 453 - AT - Central Excise

Summary

Issues:
Revenue appeal against dropping of proceedings to enhance assessable value for manufacture and supply of cylinder valves based on differential pricing.

Analysis:
The Revenue appealed against dropping proceedings to enhance the assessable value for the manufacture and supply of cylinder valves due to differential pricing. The Commissioner's order was challenged, which was based on the contention that the valves supplied to Oil Companies were the same as those sold in the market. However, the Respondent argued that there was a difference in price due to the raw materials used - virgin brass for independent sales and brass scrap for job work basis. The Commissioner extensively analyzed the issue, referring to the judgment in the case of Ujagar Prints, and concluded that the valuation for job work done should be adopted. The Commissioner's decision was based on the distinct raw materials used for manufacturing different types of valves, leading to different pricing. The Respondent cited various judgments supporting differential pricing based on similar circumstances, which were upheld by the Tribunal and even affirmed by the Supreme Court.

The Tribunal considered all submissions and records, noting that the assessees used brass scrap from the Oil Company for job work basis valves and virgin brass for independently manufactured valves, resulting in different pricing. The Tribunal found no error in the Commissioner's order, emphasizing the non-res integra nature of the issue due to numerous cited judgments supporting differential pricing. Consequently, the Tribunal dismissed the Revenue appeal, affirming the Commissioner's decision to accept different pricing for valves based on the raw materials used, in line with the judgments referenced.

This detailed analysis of the judgment highlights the core issue of differential pricing for cylinder valves based on raw materials used, the Commissioner's decision in line with the Ujagar Prints case, and the Tribunal's dismissal of the Revenue appeal due to the established practice of adopting different prices for similar circumstances supported by legal precedents.