TMI Blog2005 (7) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... appears for the appellants in spite of notice. Notice was also sent to their advocates who had withdrawn from the case as seen from letter dated 11-7-2005. Hence, we heard the ld. SDR and perused the records. The issue for determination is as to what are the manufacturing expenses and manufacturing profits which are to be included in the assessable value, besides Value of grey cloth and value of job work done, in respect of fabrics processed on job work basis. The assessable value of the fabrics will be the sum total of - (i) value of the grey cloth at the hands of the processor, (ii) value of the job work done, (iii) manufacturing expenses, and (iv) manufacturing profit. The appellants had never disputed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers, must be included. The appellants contentions that job charges include manufacturing profits and expenses meaning thereby that there are no other manufacturing expenses and manufacturing profit to be included in assessable values, are in gross mis-conception of the law and facts. The job charges/chargeable and recovered represents the only element viz. the value of the job work done. Manufacturing expenses, whatever these may be, as meant by the Hon ble S.C. are quite different from expenses included in the job charges. The manufacturing profit is the profit that would accrue if the processed fabrics are sold at the processors factory, and the same cannot be equated to processors profit forming part of the job charges. What is required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Asstt. Commissioner also considered the appellant s profit and loss accounts which showed gross profits of 19% to 22% and has inferred that such high profit percentage, which relates job work activities, was not comparable with profits accruable on sale of fabrics at the appellants factory gate and that entire trade in the region has accepted and are including manufacturing profit @ 4%. I find that in absence of availability of actual selling price at factory gate; the Asstt. Commissioner was justified in concluding that manufacturing profits @ 4% was includible in values to arrive at nearest equivalent of the deemed price at which fabrics would leave factory gate. 3.There is no merits, in the contention of the appellants that such ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
