TMI Blog2000 (7) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... tannia. The appellant was entitled to receive processing charges which include its expenses plus profits for the purpose of determining the excise value. However, the cost of the raw material supplied by Britannia will have to be included in addition to the appellant's manufacturing costs and profit. What cannot be included on the ratio of Ujagar Prints' case is any profit of Britannia or expenses which are incurred after the manufacture of the biscuits by the appellant. Despite repeated attempts made by the learned counsel for the respondent, we are unable to distinguish this case from the ratio laid down by this Court in the aforesaid two decisions of Ujagar Prints'case. This appeal is accordingly allowed. - 1819 of 1991 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yed and in respect of those biscuits no payment was to be made to the appellant and, on the contrary, the appellant would become liable to pay for the cost of the ingredients which had got spoiled. 4.What is material in this agreement is that there was a clause which specifically provided that relationship between the parties shall always be that of principal and principal and not principal and agent . The agreement also gave liberty to the appellant to continue to manufacture biscuits under other brands and to the sell the same. 5.It is nobody's case that the Unit in question was established by or at the behest of Britannia. The Unit had come into existence before the agreement dated 15-12-1986 entered into between the parties. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of India and Others [1988 (38) E.L.T. 535 (S.C.) = (1989) 3 SCC 488] was concerned with a number of issues raised by the appellant. The appellant was a processing house which inter alia processed the grey fabrics. Amongst other issues which were raised, one of the contentions urged on behalf of the appellant there in was that the grey fabric which was given for processing continued to belong to the customer and the processing house was only entitled to charge the processing charges. It was the case of the appellant therein that the price of the grey cloth, of which the processing house had never become the owner, could never be taken into consideration in arriving at the assessable value. 10.Repelling this contentions, this Court not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9) E.L.T. 493 (S.C.) = (1989) 3 SCC 531], M/s. Ujagar Prints and Others (II) v. Union of India and Others, clarified that the assessable value of the processed fabric would be the value of the grey cloth in the hands of the processor plus the value of the job work done plus manufacturing profit and manufacturing expenses whatever they pay. The factory gate was to mean the deemed factory gate as if the processed fabric was sold by the processor. To make the position clear this Court gave the following example :- If the value of the grey cloth in the hands of the processor is ₹ 20/- and the value of the job work done is ₹ 5/-, then in such a case the value would be ₹ 30/-, being the value of the grey cloth plus the val ..... X X X X Extracts X X X X X X X X Extracts X X X X
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