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2003 (9) TMI 89 - SC - Central ExciseValue of polystyrene sheets for the purposes of excise duty? Held that:- the appellant had already purchased or otherwise procured the inputs for manufacturing the sheets (the excisable goods in question) and had included the cost of the entire amount of granules which went into the production of the sheets. Excise duty presumably was also levied on that basis. The waste or scrap or unused portion of the sheets which was regrind into granules was in a sense already paid for and subjected to excise duty. The cost of production as far as the appellant was concerned could not proceed on the basis as if the granules had been obtained by the assesses for the first time. As said in the case of Collector of Central Excise, Pune v. Dai Ichi Karkaria Ltd.[1999 (8) TMI 920 - SUPREME COURT OF INDIA] that the cost of the excisable product for the purposes of assessment of excise duty under Section 4(1)(b) of the Act read with Rule 6 of the Valuation Rules should be reckoned as if it is reckoned by a man of commerce and that such realism must inform the meaning that the courts give to words of a commercial nature, like 'costs' which are not defined in this statute. In our view, this should have been taken into account in deciding the show cause notice issued to the appellant. The decision of the Tribunal is accordingly set aside. In favour of assessee.
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