2002 (2) TMI 578

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..... r : Gowri Shankar, Member (T)]. Nasik Sahakari Sakhar Karkhana Ltd., the respondent to this appeal, is a sugar mill. It cleared the molasses that arises as a by-product in the manufacture of sugar to various buyers at different value. It is stated that the goods were sold after inviting tenders from intending buyers. Notice issued to the manufacturer proposed to enhance the value of the mola .....

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..... le price was available. He therefore allowed the appeal. Hence this appeal by the Commissioner. 2. The appeal only relies upon the statement of the Chief Sugar Technologist of the Vasant Dada Sugar Institute, Pune. It is clear that determination of the value of goods sold by a manufacturer is to be done in accordance with the provisions of Clause (a) of sub-section (1) of Section 4. Only if this .....

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..... arising in the course of manufacture of sugar. Sugar cannot be manufactured without molasses arising in the course of such manufacture. It is in fact a residue of the manufacturing process. Nobody does set out to manufacture molasses. In that situation, it will not be possible to determine the cost of manufacture. What the technologist gives in his letter is to determine the cost of manufacture o .....

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