COMMISSIONER OF CENTRAL EXCISE, COCHIN Vs. KITEX LTD.

JUDGEMENT

(1.) The issue involved in the present appeal is whether the impugned goods returned from the premises of job worker after processing under Rule 12B, subjected to further manufacturing process like cutting to short length, stitching ends, ironing, folding and packing resulting in enhancement the value of product, are to be assessed at transaction value (value at which assessee cleared the goods to the customer) or at cost of grey fabric and job charges in terms of judgment in the case of M/s. Ujagar Prints.

(2.) The Tribunal in the impugned judgment has arrived at a finding that after receiving the product from job worker, at whose end excise duty is duly paid, the assessee simply cuts them into Dhotis and, therefore, in terms of Rule 12(B) read with Circular No. 556/53/2000-CX, dated 3-11-2000, it will continue to be classifiable as fabric under Chapter 52/53/55 and such a process undertaken by the appellant does not amount to manufacture. The relevant discussion in this behalf reads as under : -

(3.) We have gone through Rule 12(B) as well as the Circular relied upon by the Tribunal and find that the said Rule as well as the Circular are rightly interpreted by the Tribunal. We, thus, do not find any merit in this appeal and the same is, accordingly, dismissed.