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TMI Blog2005 (3) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... on the plea that different criteria had been circulated from time to time. The assessees are contesting the correctness of that approach by contending that the instructions contained in the earlier circulars were not in conformity with the general principles of cost accounting, and that the latest circular which incorporated correct principles should be followed in all pending cases. It is also to be noticed that the latest circular of 2003 specifically states that the earlier instructions have to be deemed to be modified by the later circular. Thus, Revenue had no independently sustainable claim. Its claim is based entirely on circulars issued from to time. That too, on incorrect costing principles. It would be wholly incorrect to apply o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. Revenue has relied on the judgment of the Apex Court in the case of CCE v. Eswaran Sons Engineers Ltd. - 2005 (179) E.L.T. 272 (S.C.) in support of this contention. 3. The contention on behalf of the assessees is that the latest Circular dated 13-2-2003 lays down the correct method of costing and it governed the valuation of all pending cases, irrespective of whether the goods in question were removed prior to the issue of that Circular or after its issue. It is being pointed out that the Circular specifically states that "general principles of costing" would be adopted for applying Rule 8 and that the costing standards circulated under the said Circular have been developed by the Institute of Cost Works Accountants of India (ICWAI). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and a Court may compel compliance with such instructions as are for the benefit of the assessee. 5. A perusal of the Circular dated 13-2-2003 makes it clear that what is being advised under that circular is to follow "the general principles of costing". The Circular also makes it clear that "ICWAI has since developed the costing standards……". About the applicability of the circular and the effect of the new costing instructions on the previous instructions, the Circular states as under : "3. It is therefore, clarified that cost of production of captively consumed goods will henceforth be done strictly in accordance with CAS-4…….. 4. Board's Circular No. 258/92/1996-C.X., dated 30-10-1996, may be deemed to be modified accordingly in so far ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment of the High Court of Calcutta in the case of Birla Jute and Industries Ltd. v. Assistant Collector - 1992 (57) E.L.T. 674 has been approved by the Apex Court in the case of Eswaran Sons Engineers Ltd. 6. We may also note that the judgment of the Apex Court in the case of Eswaran Sons Engineers Ltd. does not support the revenue's contention that assessments for each period should be decided in terms of the Circular of the relevant period, without considering the modifications subsequently made in them. The issue considered in the Eswaran Sons Engineers Ltd. judgment was altogether different. It was as to what was the effect of a subsequent circular on a demand which had been raised prior to the issue of a circular. The Court observ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circular, cannot be extinguished on a plea that a subsequently issued circular is prospective in operation. That is not the case in the present appeals. The revenue seeks to finalise pending valuations applying different costing principles on the plea that different criteria had been circulated from time to time. The assessees are contesting the correctness of that approach by contending that the instructions contained in the earlier circulars were not in conformity with the general principles of cost accounting, and that the latest circular which incorporated correct principles should be followed in all pending cases. It is also to be noticed that the latest circular of 2003 specifically states that the earlier instructions have to be "dee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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