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TMI Blog2016 (7) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... ecords, there is nothing to show that the main appellant was aware of the fact that the merchant manufacturers have not stated the correct value of grey fabrics. - demand set aside - Decided in favor of assessee. - Appeal No. E/3598 & 3599/05 - Order No. A/88078-88079/EB - Dated:- 13-5-2016 - Shri M.V. Ravindran, Member (Judicial) And Shri Raju, Member ( Technical ) For the Appellant : Shri R. V. Shetty, Advocate For the Respondent : Shri H. M. Dixit, Assistant Commissioner ( AR ) ORDER Per M. V. Ravindran These two appeals are directed against Order-in-Appeal No. BR/181 to 182/Th-II/2005 dated 16.6.2005 passed by the Commissioner of Central Excise (Appeals), Mumbai-V. 2. The relevant facts that arise for conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey have undervalued the grey fabrics and the main appellant was not aware of it. It is his submission that the statement of Shri Gautam Harlalka has only confirmed that there is difference in the valuation but not the fact that there was any under valuation on part of the appellant. He would submit that identical issue was decided by this Tribunal in the case of Madhu Tex Industries Ltd. 2009 (246) ELT 443 (Tri-Mum). He would take us through the relevant paragraph and he would also submit that the Hon'ble Supreme Court in the case of Commissioner of Central Excise Vs. S Kumars Ltd. 2005 (190) ELT 145 (SC) is also on the same issue and price at which the merchant manufacturers is selling the goods or declaring the price should be the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopting therein the cost of the grey fabrics as declared by the merchant manufacturer and the processing charges in order to discharge the Central Excise duty. In the case in hand, there is no dispute that the main appellant had filed the price declaration of grey fabrics as received from merchant manufacturer and in our considered view once the merchant manufacturer declared the price of grey fabrics, on which the processing charges is to be paid by the main appellant, then the price cannot be disputed by the appellant as he may not be aware of the cost of procurement of grey fabrics by merchant manufacturer. It is seen in this case that the merchant manufacturer had stated the same value of grey fabrics, and the same was declared by mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants had filed declarations during the relevant period alongwith the declarations as submitted to them by the merchant-manufacturers/traders. The said declarations were accepted by the authorities and are not challenged nor did the authorities direct the appellants to produce further evidence as to the correctness of the declarations of the value made by them. We find that the merchant-manufacturers, in their statements, have clearly admitted that they had undervalued the grey fabrics and they took full responsibility for the same. They also stated that broker takes blank authorization under profroma A and B duly signed to hand over the same to the processor. However, the merchant-manufacturers took full responsibility on them for gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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