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TMI Blog1999 (8) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... on job work basis. From time to time they filed classification lists and price lists and on due approval, processed and cleared the fabrics. Along with the price lists a declaration was attached showing construction of the assessable value. The cost construction showed separately the inclusion of profits at the rate of 10%. 3. 9 Show cause notices were issued during the period 29-11-1991 to 5-8-1992. These SCNs were identically worded. In each Show Cause Notice the charge was made that assessees had failed to add 10% in the assessable value as manufacturing expenses. On this count each Show Cause Notice demanded differential duty. In some cases it was alleged that the 10% addition sought to be made, was on account of non-inclusion of man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10% notional profit already added in the value of grey fabrics and processing charges would take care of elements like transportation, processing freight, insurances, interest, shrinkage etc. and profit. I, therefore, accept the A.V. declared by the assessee in all the price lists filed during the period for which all the 9 SCNs have been issued and hold that additional 10% on account of manufacturing expenses and manufacturing profit need not be added. On these observations he dropped the proceedings instituted under the Show Cause Notice. 4. The jurisdictional Commissioner then caused an application to be filed before the Commissioner (Appeals) the ground of appeal reads as under: As per the Supreme Court's decision in case of Uj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rges, etc. which need to be included, irrespective of whether or not the job worker or the grey fabric supplier has incurred the same. Similarly manufacturing profit also needs to be added. Since in the instance case assesse paid duty only on grey fabric cost and job charges, the SCNs proposed addition of 10% of the above costs in assessable value towards manufacturing cost and manufacturing profit. That the assessble value declared in the instant case consisted of only job charges and grey fabric cost has been reconfirmed by Supdt. in his letter no. RI/Aleli/SCN/91, dated 12-3-1992 addressed to the Asst. Commr. Inspite of the above the Asst. Commr. dropped the demands accepting the assessee claim that 10% had already been included in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessees. He even defined the various counts of expenses which were added by the assessees in the overall terminology processing charges . In the application before the Commissioner, for the first time, the description of the cost which were allegedly not added by the assessees have been brought out. In our opinion, an application against an Assistant Collector's order filed before Commissioner (Appeals) cannot be a substitute for a Show Cause Notice. This is an attempt to enlarge upon and correct the failures of the SCNs. The Ld. Commissioner was wrong in not noticing this but merely endorsed the ground made in the appeal before him. 8. Shri Parakh also showed us another order-in-appeal dated 13-10-1993 upholding the disposal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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