RAMKUMAR MILLS PVT. LTD. Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) Both these appeals arise from OIA Nos. 82 and 83/2003 dated 31.7.2003 and raise a common question of law and facts pertaining to the same assessee and hence they are taken up together for disposal as per law. The appellants are manufactures of excisable goods falling under Chapters 52, 54, 55 and 58 of Central Excise Tariff Act, 1985. The issue in both these appeals pertains to determination of assessable value of the processed fabrics. The department took the view that the value of the pre -shrunk material is required to be taken to arrive at the assessable value while the assessee took the view that the issue was covered in their favour in terms of the judgment rendered by the Tribunal in the case of Gemini Dyeing and Printing Mills Ltd. v. CCE, Bangalore - 1997 (91) ELT 195 (Tribunal) wherein it was clearly laid down that the value of the shrunk material alone is required to be taken for assessment. The findings recorded by the Tribunal in paras 4 and 6 to 9 in Gemini Dyeing and Printing Mills Ltd. is re -produced herein below :

(2.) This view has been asserted by this Bench again in the case of CCE, Bangalore v. . Gemini Dyeing and Printing Mills by Final Order No. 449/2001 dated 15.03.2001. However, the Kolkata Bench, in the case of Indian Rayon and Industries Ltd. v. CCE 2002 (150) ELT 388 (Tri -Kolkata) has taken a contra view and the finding recorded by the Third member in paras 18 to 25 is reproduced herein below :

(3.) In view of the direct conflict between both these judgments, the matter is required to be referred to the Larger Bench to be constituted by the Hon'ble President in this regard to decide the issue as raised in the appeal.