2003 (6) TMI 121

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..... for valuation of captively consumed yarn. This has been confirmed by the impugned order-in-appeal which has also rejected the claim for abatements on account of packaging charges and sale expenses holding that cost data furnished was not in respect of the factory located at Anandrao Nair Road alone.  2.The learned advocate for the appellants states that the appellants have submitted cost of captively consumed yarn to the department. He states that no adjustments have been allowed for packaging and selling cost though such costs do not arise in captive consumption. He also states that expenses on sizing and warping etc. cannot also be included in the value as the yarn is cleared for captive consumption before sizing etc. at the spind .....

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..... ue. The demands which are the subject matter of this appeal are in respect of captively consumed yarn for which no differential duty was paid on differential value. 5.It is the contention of the appellants that  as earlier directed by the Commissioner (Appeal) in his order dated 31-8-1998, the Assistant Commissioner should have engaged the services of AD (Cost) or other specialized person to apportion post spindle stage cost and allow abatements for the captively consumed yarn. They are aggrieved that the Assistant Commissioner has adopted the value of yarn sold by the appellants for charging duty on the yarn captively consumed. 6.It is the case of the department that since  there is a sale of yarn at the factory gate, there i .....

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..... y consumed yarn. 8.We find that Section 4(1)(a) of the Central  Excise Act, 1944 has been applied to the yarn sold by the appellants and that they have no objection to the same. It is now settled law that where there is factory gate sales, the price of the same will apply for assessment purposes to all other goods, e.g. see Indian Oxygen Ltd. v. CCE. - 1988 (36) E.L.T. 723 (S.C.). There is also no provision for allowing any abatements from such ex-factory price. The valuation rules come into play only when the value cannot be determined under the said Section 4(1)(a). In fact, Rule 3 of the Central Excise (Valuation) Rules, 1975 makes it clear that the rules are for valuation of excisable goods under Section 4(1)(b) of the Act, i.e. .....

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