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2016 (6) TMI 716 - AT - Central ExciseValuation of processed grey fabrics for excise duty - period of dispute is March, 2000 to December, 2000 - Held that:- The Revenue built their case against Respondents based on balance sheet for the year 1997-98. On this ground alone, the proceedings against the Respondents have to fail. The Respondents have submitted detailed work sheet with costing details. The various components for arriving at cost of grey and cost towards process - loss, processing/packing charges have been specified. The cost of yarn is said to be based on prevailing market rate. The Original Authority held that the costing should have done only on actuals. However, while arriving at the figures for purported undervaluation the Revenue relied on Profit & Loss Account and Balance Sheet of second Respondent for cost of grey fabrics. Further, addition to the cost thus arrived was made towards freight, tax, insurance, commission, etc. again based on the said Balance Sheet. We find such exercise to arrive at assessable value for the impugned period is without any legal basis and arbitrary. We find that during the relevant period, there was no statutory requirement or Boards guidelines regarding submission of CAS-4 Certificate. The standards were incorporated through the Circular dated 13.02.2003 of the Board for future guidelines.
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