Commissioner of Central Excise, Vs. Jamshri Ranjitsinghji Spg. and Wvg. - Court Judgment

Excerpt:

.....of unsized yarn. the representative of the respondent agrees with the contention of the departmental representative that the case is covered by the decision of the tribunal in century textiles & industries ltd. v. cce 2001 (131) elt 671. he says, however, that in that decision, it has been held that where the yarn in cleared for captive consumption in the manufacture of fabric, it is the weight of value of the unsized yarn that should be taken into account, where the yarn is cleared for home consumption it is the weight of value of the sized yarn. he says that the respondent cleared the yarn both for home consumption as well as for captive consumption in the manufacture of fabric and the duty payable therefore will have to be worked out.2. accordingly we allow the appeals and set aside the impugned order.the matter is remanded to the assistant commissioner for calculating duty payable, by applying the ratio of the decision in century textiles & industries ltd.

Judgment:

1. The question for consideration in these 12 appeals is whether in determining the liability to duty on the yarn that the appellant manufactured is the weight of value of unsized yarn that should form the assessable value, weight of the value of unsized yarn. The representative of the respondent agrees with the contention of the departmental representative that the case is covered by the decision of the Tribunal in Century Textiles & Industries Ltd. v. CCE 2001 (131) ELT 671. He says, however, that in that decision, it has been held that where the yarn in cleared for captive consumption in the manufacture of fabric, it is the weight of value of the unsized yarn that should be taken into account, where the yarn is cleared for home consumption it is the weight of value of the sized yarn. He says that the respondent cleared the yarn both for home consumption as well as for captive consumption in the manufacture of fabric and the duty payable therefore will have to be worked out.

2. Accordingly we allow the appeals and set aside the impugned order.

The matter is remanded to the Assistant Commissioner for calculating duty payable, by applying the ratio of the decision in Century Textiles & Industries Ltd.