9911796707
TMI Blog1996 (9) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Collector had passed two separate orders against the two manufacturers. Their appeals were consolidated by the Collector (Appeals) who set aside the orders passed by the Assistant Collector and remanded the case to him by a common order. The common order is challenged by the SIC as also by the department against both the manufacturers. 2. The manufacturers in these cases used aluminium rod as raw material for the manufacture of an intermediate product, bare aluminium strip, which in turn is used in the manufacture of final product, namely, insulated strip, which is cleared on payment of duty. The impugned orders related to approval of four price lists filed by the SIC and three price lists filed by the SEP in regard to the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... based on the cost of production or manufacture and profits, if any, which the assessee would have normally obtained on the sale of such goods. Sub-clause (ii) is to be invoked if the value cannot be determined under sub-clause (i). The value under sub-clause (ii) would be determined on the basis of value of comparable goods produced or manufactured by the assessee or by any other assessee, making reasonable adjustment taking into consideration all relevant factors. Sub-clause (ii) would be invoked only where value of comparable goods produced by the manufacturer or assessee or any other assessee cannot be ascertained. It is, therefore, clear that sub-clause (ii) would apply to a case where product comparable to the intermediate product is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel appearing for SIC tried to explain the scope of expression gross profit and net profit and he expressed his apprehension that in the garb of adding gross profit the element of overhead expenses including salaries would be added twice. He explained his apprehension by illustrating a case where the overhead element has been added in arriving at the cost of manufacture and to such cost of manufacture is added the gross profit and since the gross profit is arrived at before deducting the overhead element, the assessable value would include the overhead element twice over. We agree that under no circumstances overhead element or any other element should be added twice in the assessable value. We find from the Annexure to the show c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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