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TMI Blog2002 (2) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... d man-made fabrics falling under Chapter 55. They are processing the fabrics received from various parties on job work basis. The assessable value of the processed fabrics is determined on the basis of cost construction method taking into account the landed cost of the raw material of (grey fabrics) and the processing charges. For this purpose the processors (respondents) filed a declaration in which the cost of raw material is taken as per the declarations filed by the principal suppliers. The respondents paid the duty on the processed fabrics as per the law laid down by the Hon ble Supreme Court in the case of Ujagar Prints etc. v. Union of India Others - 1989 (39) E.L.T. 493 (S.C.). The assessable value declared by the respondents in e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, the adjudicating authorities confirmed the differential duty demands on them apart from imposing the various amounts of penalties. The respondents filed appeals and the Commissioner (Appeals), Jaipur vide his orders as referred to above allowed their appeals by relying on the decision of the Tribunal in Sangam Processors (Bhilwara) Ltd. v. C.C.E., Jaipur - 2000 (122) E.L.T. 45 (T), wherein it is held that the excise authorities cannot go beyond the declared value. In the said order, it is also held that the extended period of limitation cannot be invoked since the entire material was made available to the department. 3. In the present appeals by the Revenue, it is contended that where manifestly the grey fabrics have been priced at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 174 of the Central Excise Rules, 1944 enjoins that when goods owned by one person are manufactured by another the information is required relating to the price at which the said manufacturer is selling the said goods and the person so authorised agrees to discharge all the liabilities under the said Act and the rules made thereunder. The price at which he is selling the goods must be the value of the grey-cloth or fabric plus the value of the job work done plus the manufacturing profit and the manufacturing expenses but not any other subsequent profit or expenses. It is necessary to include the processor s expenses, costs and charges plus profit, but it is not necessary to include the trader s profits who gets the fabric processed, because ..... X X X X Extracts X X X X X X X X Extracts X X X X
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