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TMI Blog2007 (11) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... rose for determination before the tribunal was whether Rajasthan Spinning and Weaving Mills Ltd. (RSWML) was the real manufacturer who carried out textile processing from its process house at Mordi and if so whether the Department was right in invoking best judgment assessment in terms of Rule 7 of Central Excise (Valuation) Rules, 1975 (1975 Rules for short). 3. RSWML are the manufacturers of yarn and fabric. It had set up a process house at Mordi in 1994-95. The process house was set up for processing their fabric. The woven fabrics manufactured at their weaving unit was processed on job work basis by Mordi processing house. This was with effect from 29th March, 1995. On 16th June, 1995 the said process house was let out by RSWML to Bhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to proceed on the basis of "comparable goods method" is there a case of undervaluation. Is the matter revenue neutral? In this connection, we may point out that the "comparable goods method" is contemplated by Rule 6(b)(i) whereas the "cost method" is contemplated by Rule 6(b)(ii). In this case even if we are to proceed under Rule 6(b)(i), as contended by the Department, we find from the facts that RSWML used to receive unsorted fabrics from its process house, RSWML thereafter used to carry out the work of sorting and thereafter the goods were cleared through their Depot. Under Section 4(1)(a) of the Central Excise Act as it stood at the relevant time, in case of valuation falling under Section 4(1), the normal price constituted the bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that value addition abatement was claimed by the assessee. There is no discussion on this aspect of the case in the order passed by the Commissioner. In that connection we quote hereinbelow a complete table submitted by RSWML before the Commissioner which reads as under : "Even if the value is determined on comparable goods basis, there would be no differential duty liability at all. This is evident from the following : Qty (mtrs) Value (Rs.) Assessable value as per 52A Invoices from process house for the period 16-6-95 to 20-2-98 17004521 105,53,29,128 Add : excise duty paid 16,20,17,071 Total cum duty value 17004521 121,73,46,199 Add : 40% towards va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ason to interfere with the impugned judgment of the tribunal. 11. Before concluding, we may state that valuation is not an exact science. Some amount of guess work exists in valuation. Therefore, different methods are prescribed by Valuation Rules. These rules are prescribed in order to find out the actual realization which realization constitutes the basis of assessable value. At the same time one must keep in mind that different methods prescribed have to converge to a common valuation. For example, as stated above, Rule 6(b)(i) prescribes "comparable goods method", Rule 6(b)(ii) prescribes "cost method" and Rule 7 which contemplates best judgment assessment states that the Assessing Officer is free to apply any of the methods prescribe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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