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TMI Blog1998 (7) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... g Works (appellant in appeal E/1094/91-A and called job worker for short), confiscated 7877.10 L. metres of man-made fabrics valued at Rs. 1,04,744.34 under Rule 173Q of the Rules allowing redemption on payment of fine of Rs. 50,000.00, confiscated the job-worker s plant, land, machinery, etc. allowing redemption on payment of fine of Rs. 1 lakh and imposed penalty on two partners and the Chief Executive of the job-worker. Since the man-made fabrics had already been released against B-II Bond for Rs. 1,04,744.34 with bank guarantee for Rs. 26,186.00, the Collector directed appropriation of the latter amount from the security in case the goods were not produced. 2. The demand in this case relates not to Central Excise Duty but to the Addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T. 493 (S.C.). The Department has no contention that the assessable value declared by the appellant was not in conformity with the Ujagar Prints formula. 5. The contention of the Department has been that the wholesale prices charged by the merchant - manufacturer (supplier of raw materials to the job-worker and who received back the processed goods from the job-worker) to wholesale dealers was far in excess of the assessable value declared by the job-worker. This would be so in all cases where an activity of manufacture is carried out by job worker, since the supplier of raw materials has to incur various items of expenditure in marketing the goods and would also expect a reasonable margin of profit. The impugned order does not say that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e job-worker. That would be quite contrary to the Ujagar Prints formula. 6. Neither the show cause notice nor the impugned order indicated that the assessable value declared by the appellant for the purpose of availing benefit of the exemption notification was in excess of the correct assessable value to be arrived at as the sum total cost of raw materials, manufacturing cost of the job-worker and the margin of profit of the job-worker. This cannot be regarded as a case where correct duty has not been paid in accordance with the terms of the exemption notification. The demand of Rs. 20,77,992.57 must fail on this account. 7. The confirmation of demand of Rs. 13,123.50 which is otherwise admitted is not in challenge. 8. On the authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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