TMI Blog2000 (1) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... dent processors, the simple point of dispute is whether the assessable value of such processed cotton fabrics should be on the basis of the value at which the goods were sold by the owner of the said processed fabrics or it should be as per the Central Excise Valuation Rules on cost construction method. 2. While the department proposes that the correct valuation would be on the cost plus basis, ld. Consultant, Shri S. Kandaswamy is at pains to argue that since the goods are sold in the wholesale market by the owners thereof after they are processed by the present appellants, therefore wholesale price in market being available, that shall constitute the assessable value. He further submits that this price was submitted in the price list su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and therefore, the show cause notice coveres only 6 months period. Even though the word suppression may have been mentioned in the show cause notice, since the period involved is only 6 months, and there is no invokation of the proviso to Section 11A with respect to the extended period, therefore the show cause notice was rightly issued by the Superintendent and adjudicated by the Deputy Commissioner. 4. Ld. DR also submits that in this case the undisputed facts are that merchants/traders supplied grey cotton fabrics to the appellants unit for processing thereof. The appellants charge processing charges for doing this. This processing attracts excise duty. However, when the goods are cleared from the factory gate of the appellants, who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory gate of the appellant assessee, there is no sale involved by the assessee to any buyer in wholesale trade. Under this circumstances, the very basic provision of Section 4(1)(a) are not attracted while fixing the assessable value in this case. 6. Therefore, we, of necessity, have to go to Section 4(1)(b) which deals with such situation where the normal price of such goods are not ascertainable for the reason that they are not sold, and in terms of the said sub-section, we have to take resort to the prescribed Valuation Rules for other correct determination of the assessable value. 7. These rules are prescribed as the Central Excise (Valuation) Rules, 1975 and came into force on the 8th of August, 1975, therefore the period of dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of such goods according to the best of his judgment, and for this purpose he may regard, among other things, to any one or more of the methods provided for in the foregoing rules. We find that therefore, the show cause notice have proposed a best of judgment assessment under Rule 7 by applying the objective method of cost construction and we do not find any legal infirmity in this proposal which has been confirmed by the orders impugned. 10. As far as the submission of there being no suppression involved is concerned, we find that it is clear from the facts and records available before us that when the assessee appellants filed the price-list concerning these excisable goods, it had declared therein a detailed statement of processi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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