9911796707
TMI Blog2001 (7) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... dyeing charges, trade discount and cash discount from the assessable value of their final product i.e. cotton yarn, manufactured by them. 2. The facts leading to the filing of the present appeal may briefly be stated as under : 3. The appellants are engaged in the manufacture of the cotton yarn falling under Chapter 52 of the CETA. They opted for provisional assessment as they were transferring the stock of the cotton yarn to their sale depots located at various places. They had been paying Central Excise duty on the said yarn on the tentative value at the factory gate. At the time of the final assessment for the period 1-10-1996 to 31-3-1997, they were disallowed deductions in all of Rs. 26,11,009/- from the assessable value o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or deducted from the invoice price". 6. The perusal of the impugned order of the Commissioner (Appeals) shows that he had disallowed deductions on account of trade discounts and cash discount to the appellants, by observing that there was no evidence regarding passing/allowing of these discounts to the buyers. But his these observations cannot be said to be well founded at all. The appellants have placed on record all the invoices and other documents from which it is quite evident that they had passed on trade discount and cash discount to the buyers and these discounts were also known at or prior to the removal of the goods. They have clearly indicated about these discounts in their invoices and other statutory record. Moreover, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken as independent manufacturers under the law. In this context reference may be made to an identical case of K.D.R. Spg. & Wvg. Mills Ltd. - 1999 (111) E.L.T. 423 (Trib.). In that case also the assessees were manufacturer of only grey yarn and the dyeing of the yarn was got done by them from job workers. The Revenue wanted to include the cost of dyeing in the assessable value of the yarn for charging the duty but the Tribunal ruled as under : "Since the assessee was not undertaking dyeing operation at all and as such there was no justification to hold that he was manufacturer of dyed yarn. The dyeing operation was carried out by another manufacturer and if at all duty was payable on dyeing, it was to be paid by the manufacturer who carri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory gate, price at the time of removal at the factory gate should be basis for assessment. Place of removal after the amendment of 1996 can be the depot as well. If the place of removal is the depot should the time of removal also be the time of removal of the goods from the depot ? 9. "Time of removal" has also been defined with reference to the place of removal, namely, depot by sub-clause (ba) to clause (iv) of Section 4. That definition reads : "'time of removal' in respect of goods removed from the place of removal referred to in sub-clause (iii) of clause (b) shall be deemed to be the time at which such goods are cleared from the factory." So, in the case of removal of goods from depot the time of removal should be the time at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amendment came up before the Two Member Bench headed by the President of the Tribunal, in Castrol India Ltd. v. CCE, New Delhi - 2000 (118) E.L.T. 35 (Tribunal) = 2000 (41) RLT 652 (CEGAT). In that case blended lubricating oil was removed from the place of manufacture in bulk in tankers to the depots/packing place from where oil was sold after repacking in smaller quantities. The cost of packing done at the depot/packing place was sought to be included in assessable value even after amendment of Section 4, effective from 28-9-1996, but the same was disallowed by the Tribunal and it was observed as under :- "In the case of removal of goods from the depot the time of removal shall be the time at which such goods were cleared from the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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