2004 (9) TMI 404 - AT - Central Excise

Summary

Issues: Valuation of trade samples of textile fabrics for free distribution.

The judgment revolves around the valuation of trade samples of textile fabrics cleared for free distribution. The appellant discharged duties based on a pro rata value compared to 'fents' and 'rags' of similar fabric types. The Commissioner (Appeals) confirmed the demands, stating that the samples, though of good quality, were not marketable due to their short length. The Tribunal, in a previous order, emphasized that samples should not be equated with rags and fents, suggesting a valuation between standard fabrics and remnants. Another Tribunal bench highlighted that the samples, being of fine quality, should be valued higher than fents and rags but lower than standard fabrics. The Tribunal rejected the idea that samples were akin to good quality textiles, affirming that they resembled fents and rags. Consequently, the Tribunal found the appellant's valuation acceptable, setting aside duty demands and allowing the appeals.