Delhi Court June 1986 Judgments

Collector of Central Excise Vs. Baggaram Enterprises

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi

Reported in: (1986)(8)LC441Tri(Delhi)

1. The respondents are not represented today. They have requested us to consider their written submissions. We have done so. We have also heard the learned representative of the department.2. On careful consideration of the matter, we find that, the respondents are textile processors. Certain manufacturer-Exporters of garments buy grey cotton fabrics and artificial silk fabrics from the market and send them to the respondents for processing. The respondents dye/print these fabrics on recovery of processing charges. Since the fabrics so processed are liable to central excise duty on ad valorem basis, and there being no sale thereof, a dispute -arose in these proceedings as to how their value should be determined for assessment of central excise duty. The authorities found that sale price of comparable goods was not available and so they took resort to best judgment assessment under Rule 7 of the Central Excise valuation Rules, 1975. The Assistant Collector held that assessable value of...