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2019 (2) TMI 1165 - CESTAT MUMBAIValuation - processed fabric - inclusion of the shrinkage factor @ 4.2% while determining the assessable value - Held that:- From the referred paras of the order of adjudicating authority the fallacy in reasoning adopted is quite evident - If the scheme as laid down by the trade Notice No 65/2002 read with Trade Notice No 46/2002 is read in proper perspective then it can be seen that scheme of valuation as per the said two trade notices and trade notice of 31.03.2003 are identical. From the perusal of the said trade notice, it is quite evident that what is being clarified and determined there in is the assessable value of processed fabric. If that be so the assessable value, so determined should be multiplied by the quantity of processed fabric cleared to arrive at the total assessable value and duty determined thereon. From Annexure B, to the show cause notice, it is quite evident that duty has been not demanded by enhancing the assessable value of the processed fabric, but is demanded on the value of grey fabric by increasing the quantity of grey fabric. There is no dispute about the fact that duty has been paid by the appellants after determining the assessable value as per trade notice of 31.03.2003. When the total quantum of the grey fabric received has been taken into account while determining the landed cost of grey fabric then the shrinkage factor is part of the total value, and there cannot be further addition to the same. The Adjudicating authority have fallen in error to the extent of addition of the “shrinkage factor” over and above the landed cost of grey fabric as received by the appellants - demand set aside - appeal allowed - decided in favor of appellant.
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