Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Central Excise (Valuation) Rules 1975- ssessable value-Computation of-Textile manufactured at weaving Unit-Processed at process house on job work basis |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Central Excise (Valuation) Rules, 1975:rr.6(b)(i), (ii) and 7 - Assessable value - Computation of - Textile manufactured at weaving Unit - Processed at process house on job work basis - Unsorted goods received from processing house - Manufacturer then carrying out work of sorting and thereafter goods cleared through Depot - Revenue claiming differential duty on the ground that agreement of lease for processing was a sham in order to change the basis of valuation/assessment of fabric processed, from "comparable goods basis/method" to "cost method" - Tribunal holding the lease agreement as genuine and manufacturer right in invoking cost method under r.6(b)(ii) - Held: Value of sorted goods cleared at the Depot would be different from value of unsorted goods (semi-finished goods) cleared at factory gate - Thus there was "value addition" and taking this into account, proportionate actual realization on sale of graded fabrics would be more than what is calculated by Revenue - Different methods have to converge to a common valuation-The aspect of convergence is significant - It is not possible to accept wide variation in the result - Revenue may apply different methods of valuation, but it has to ultimately ascertain by applying rule of convergence the estimated ad valorem value which would constitute the basis of assessable value - There is no reason to interfere with judgment of Tribunal. |
Judge | N/A |
Neutral Citation | 2007 INSC 1200 |
Petitioner | Commissioner Of Central Excise, Jaipur |
Respondent | M/s. Rajasthan Spg. & Wvg. Mills Ltd., Etc. Etc. |
SCR | [2007] 12 S.C.R. 703 |
Judgement Date | 2007-11-28 |
Case Number | 735-744 |
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