2004 (6) TMI 108

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..... that the issue is valuations of samples of fabrics removed for supply to traders by a manufacturer of fabrics. The size of these cut pieces are not exceeding 50 cms in length. They were cleared as per value applicable to Fents which were being cleared by the appellant. Fents as per understanding of the trade and Central Excise are bona fide cut pieces/remnants of textile from 45 cms. to 90 cms. i .....

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..... same appellants had already been decided in the earlier appeal petition contained in F.No. 400 M-J/97 and 548/97. The relevant findings in the said orders is given below : "6. While it is acceptable that the samples even though drawn from the base fabrics, are comparable in nature to the same categories of fabrics, however, samples by the nature of their sizes and different packing, as also the .....

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..... Excise Valuation Rules. The assessable value in respect of samples would need to be determined under the requirement of Section 4(1)(b), and with reference to Rule 7 which provides that the value be determined by application of the best judgment principle. In arriving at the best judgment, the provision of sub-rule 6(b)(i) should be applied. The value of comparable goods sold by the appellants at .....

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..... this criteria". held that the findings given above shall be equally applicable in regulating the duty liability on samples referred in the present appeal. 2. After hearing both sides and considering, it is found : (a) Rags/fents are never equated, value-wise or quality-wise with prime quality textile. Once the valuation of rags and fents which are also remnant pieces of good quality fabrics .....

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..... his appeal we would like to observe that sample cut pieces of fabrics may be classifiable as new rags under Heading 63.10 of the Tariff and the entire basis of working out these demands may not be appropriate. However the issue of classification is not before us. We would part with this appeal as it is. 3. In view of the findings the order is set aside and the appeal allowed. - - TaxTMI - .....

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