9911796707
TMI Blog1985 (10) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... re for payment of excise duty, inter alia, on cotton yarn and cotton fabrics in the case of a manufacturer who manufactures cotton yarn and uses it in the manufacture of cotton fabrics. The relevant rules in this connection were rule 96V and rule 96W (since repealed in June 1977). Under rule 96V "where a manufacturer who manufactures cotton yarn ........... and ............ uses the whole or part of the yarn manufactured by him in the manufacture of cotton fabric in his own factory, makes in the proper form an application to the Collector in this behalf, the special provisions contained in this section, on such application being granted by the Collector, apply to such manufacturer in substitution of the provisions contained elsewhere". Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, 1977. It pertains to the period 1st of March, 1976 to 28th February, 1977. The third show cause notice is dated 8th August, 1977. It pertains to the period 1st March 1977 to 24th May, 1977. Under these three show cause notices the petitioners have been called upon to pay excise duty on cotton fabrics which was short levied on account of non-calculation of excise duty on yarn in the value of cotton fabrics. In respect of these show cause notices the Assistant Collector of Central Excise passed an order dated 12th January, 1981 confirming the demands contained in the said show cause notices. Thereafter the petitioners went in appeal before the Collector of Central Excise. The Collector of Central Excise by his order dated 14th August, 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to suggest that the excise duty on cotton yarn is not to be included in the assessable value of cotton fabrics. The valuation of excisable goods for the purpose of charging of duty of excise is provided for in section 4 of the Central Excises and Salt Act, 1944. It is not in dispute that ordinarily any excise duty paid on cotton yarn which goes into the manufacture of cotton fabrics would form a part of the assessable value of cotton fabrics. The provisions of rules 96V and 96W do not entail any departure from this normal method of valuation of excisable goods. Hence the petitioners are required to include the excise duty on cotton yarn in the assessable value of cotton fabrics for the purpose of calculation of excise duty on cotton fabri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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