9911796707
TMI Blog2006 (1) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... ue visited the factory of the appellant and on verification it was found that there was shortage of 199 thans supplied by M/s. Tulsi Cotton Mills (P) Ltd. and there was also an excess of 205 thans which were not entered in their statutory record. It was also found that the appellants were undervaluing their goods for the purpose of payment of duty as they are not adding the value of chemical used in processing in the assessable value of the fabric for the purpose of payment of duty. 3. The contention of the appellant is that on 8-4-2000, their partner Shri Kanhaiyalal Jain made a statement to the effect that 205 thans which were not entered in their statutory record also contained 199 tans supplied by Tulsi Cotton Mills. On the next day, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, demand was rightly made in this regard. 6. In respect of valuation, the contention is that the statements of partner of the appellant as well as Director of Tulsi Cotton Mills shows that the appellants were receiving cotton fabric for processing on job work basis. The contention is that the supplier of the fabric gave specific directions regarding the process undertaking of the fabric and also further gave directions to clear the fabric to the particular customer or they were receiving back the fabric after processing. This shows that the appellants were only job worker, therefore, they have to pay duty after taking into consideration the cost of the raw-material the cost of their labour as per the law laid down by Hon ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er customers as per the direction of the supplier of fabric, therefore, the appellants are liable to pay duty as per the law laid down by the Hon ble Supreme Court in the case of Ujjagar Prints (supra). The assessable value of process fabric would be the value of grey + the value of job work + manufacturing profit and manufacturing expenses. The appellants purchasing the chemical from the market and also getting from the supplier of fabric. The cost of these chemicals are to be added while calculating the assessable value for payment of Central Excise Duty. In these circumstances we find that regarding the assessable value of the goods, the matter requires reconsideration by the adjudicating authority. The demand and penalties in this regar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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