D.B.S. INDUSTRIES Vs. C.C.E.

JUDGEMENT

(1.) The issue raised in these appeals is common. Therefore, we proceed to dispose of all the appeals under a common order.

(2.) The appellants are engaged in the manufacture of PP/HDPE fabrics and sacks falling under sub -heading 3926.90 and 3923.90 respectively. The goods manufactured are sold at the factory gate on payment of duty. In addition to the sale of the fabrics and sacks at the factory gate, the appellants stock transfer some quantity of the fabrics manufactured to their godown. They are sent to the job worker for conversion into sacks. Sacks so received from the job workers are sold to the customers. The department took the view that fabric stock transferred to godown should be valued on the basis of the selling price of the sacks. The adjudicating authority as well as the Commissioner (Appeals) affirmed the duty demand and penalties imposed on the assessees.

(3.) It is contended on behalf of the appellants that the value of the goods in the form in which they are cleared from the factory is to be adopted and not the value of the goods after conversion done by the job workers. In support of the above contentions, the appellants placed reliance on the decisions of this Tribunal in the case of (a) Savita Chemicals Ltd. vs. C.C.E. 2000 (119) ELT 394 affirmed by the Supreme Court in 2002 (130) ELT A 262 (SC) (b) Castrol India Ltd. vs. C.C.E. - 2000 (118) ELT 35 affirmed by the Supreme Court in 2001 (121) ELT a\A 224 (SC) and (c) Malwa Cotton Spg. Mills vs. C.C.E. - 2001 (132) ELT 671.