9911796707
TMI Blog2012 (7) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided in favor of assessee. - E/2786/06 - - - Dated:- 21-6-2012 - Mr. M.V. Ravindran, Mr. B.S.V. Murthy, JJ. For Appellant : Shri R. Nagar, A.R. For respondent : Shri R. Subramanya, Adv Per : Mr. M.V. Ravindran; This appeal is filed by the Revenue against order in appeal No.RS/186-187/SRT-II/06, dt.31.05.06. 2. The relevant facts that arise for consideration are the respondent herein was engaged in the manufacture of textured yarn under Chapter 54 of Central Excise Tariff Act, 1985 on job work basis. The respondent unit was receiving POY from M/s Reliance Industries Ltd. and after texturising the same they were returning the said POY to M/s Reliance Industries Ltd. and they were given Rs.23/- per kg as charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le the goods cleared by the job worker has to be compared that the goods cleared by the job worker and provisions of Rule 6(b)(ii) of Central Excise Valuation Rules provides for determination of the value on the cost of production or manufacture in the case of profits if any. It is his submission that the respondent herein has not followed the law as has been settled by the Apex Court in the case of Ujagar Prints wherein the Apex Court has settled the law which states that the assessable value of the goods manufactured on job work basis has to be on the raw material cost + job charges. It is the submission that merely because some price of textured yarn was informed by the principal manufacturer to the respondent-assessee, it ought not to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/- per kg as job charges from M/s Reliance Industries Ltd. The respondent while clearing the final product i.e. textured yarn from his factory premises as a job worker, discharges the duty liability based upon the price given to him by M/s Reliance Industries Ltd. The price given by M/s Reliance Industries Ltd. is the sale price at which M/s Reliance Industries Ltd. sells the said textured yarn in the market. 7. On the above factual background, we find that the claim made by the assessee seems to be correct and has strong force in as much as the adjudicating authority in his order in original has categorically recorded that during the period, the prices shown in the price list of M/s Reliance Industries Ltd. is less than the price show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uniformity in the additions/ deductions in the case of valuation of goods. It is provided in the referred circular that when the goods are manufactured on job work basis the assessable value of such goods has to be determined under Rule 7 of the Valuation Rules,1975. The circular further clarifies under subsequent para that in case value of comparable goods is known, the same can be adopted for goods manufactured by the job worker. In other cases, the value shall be determined by adopting the cost construction method taking the landed cost of the raw material at the premises of the job worker (i.e. including the cost of the raw material, freight, insurance, interest charges etc. involved and the job charges (which include the profit margin) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be set aside being a non-speaking order in as much as the points taken in defence have not been considered. It is a settled position of law that once a judgment [in this case the judgment of Commissioner(A)] has taken finality and has been brought to the knowledge of the lower authority, the lower authority cannot take any adverse view. Accordingly, appellants succeed on merit as well as on the principle of res judicata. 8. It can be noticed from the above reproduced paragraphs of the findings of the first appellate authority that the value considered by the respondent-assessee for discharge of duty liability is the value of the textured yarn cleared from his factory premises as a job worker and put into the market by M/s Reliance ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
