9911796707
TMI Blog2004 (12) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of grey fabrics processed by them. The period of demand is from 1997 to 2002. The demand has been raised by taking resort to proviso to Section 11A of the Central Excise Act and allegation has been made in the Show Cause Notice that the appellant-processors had suppressed facts relating to actual value of the processed fabrics which were cleared by them. In these circumstances, we heard all these appeals together and are disposing them of under this common order. 2. The appellants received grey fabrics from various parties who entrusted the processing of those fabrics with the appellant-processors. The appellants carried out the processing, collected processing charges and returned the processed fabrics to the senders. Even tho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose of demanding duty from 1997. The rates indicated in the rate lists depended on the weight per metre of the fabric. In the case of Anand Syntex, Bhilwara, we find that the rate varied from Rs. 9.50 per metre to Rs. 17/- depending upon variation in weight from 225 grams per metre 650 grams per meter. The impugned orders demand duty by taking the highest rate of processing charge (depending upon the weight of fabric) as well as by enhancing the value of grey fabric to the level appropriate for that weight. The valuation of the fabrics in question have been done by revising the price of the grey fabric consignments as well as the rate of processing charges. Thus, the impugned orders have rejected the grey fabric prices declared by the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the parties for whom processing were carried out. It is being submitted that further, they were also giving cash discounts. It has been asserted by the Counsel for the appellants that if valuation of the goods is made taking the commercially realised processing charges and the prices declared for grey fabrics, there would be no short-levy at all. The Counsels for the parties have emphasized that the present duty demand has no basis either in the rates charged by the parties or the amounts realised by them. It is entirely on a theoretical basis that processing rate for the year 2001 is to determine the weight and price of the grey fabrics and processing cost. The Counsel emphasized that the fallacious nature of the method adopted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s had been declared. Despite the supply of such detailed information contemporaneously, the departmental authorities had not checked or found fault with any of the particulars mentioned therein, particularly with regard to the weight of the grey fabrics received. It is being contended that this is a case where all relevant details were contemporaneously known to the departmental authorities but no action was taken in time. It is the common submission of all the appellants that in these circumstances the allegation of suppression of material facts cannot be raised at all. 5. The learned Counsel for the appellants has also relied on the decision of this Tribunal in the case of M/s. Sangam Processors (Bhilwara) Ltd. v. Commissioner of Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Counsel for the appellant has pointed out that this conclusion is being reached without taking into consideration the entire commercial transaction. He has pointed out that, in that transaction, the appellant had given credit note at the end of the month to M/s. Shree Nath Suitings for whom the processing was carried out. It is the contention of the learned Counsel for the appellant that if full particulars of the transaction are taken into account, it would be seen that the processing charge actually realised was not more than the amount declared. 7. Upon perusal of record and consideration of the submissions made by both sides, we find that the duty demands are being made on a purely theoretical basis and such demands are not susta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade incorrect. We have seen the invoice placed before us. The appellants had given rebates as well as cash discounts many cases and credit notes were being issued in this regard. The impugned orders have taken the highest of the rates without taking note of the discounts or rebates or the credit notes issued. Therefore, there is no factual basis to the re-determination of processing charges also. In any event, there is no finding that the amounts realised by the appellants towards processing charges were higher than the amounts taken into account at the time of determining the assessable value of the fabrics in question. 8. In the above facts and circumstances, we are of the view that the finding regarding short-levy has no reliable factu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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