ESCORTS LIMITED Vs. CCE

JUDGEMENT

(1.) M /s Escorts Limited, the appellant in these three appeals, is a manufacturer of tractors and motor vehicles. Parts of these items are also manufactured in -house. The common issue that arises in these appeals is the valuation (for assessment to Central Excise duty) of two parts, namely, hydraulic gear and hydraulic distribution assembly manufactured by the appellant and used captively in the production of tractors. Except for the difference in the periods covered in the three appeals, facts and legal position are the same in regard to all the appeals.

(2.) THESE appeals are before us on remand by the Hon'ble Supreme Court vide order dated October 25, 2004 in Civil Appeal Nos. 7310 -7312 of 2003.

(3.) THE contention of the Revenue is that parts which are used in in -house production are required to be assessed at the value at which the same parts when sold are assessed in terms of Section 4(1)(2) of the Central Excise Act. As against this, the appellant has contended that the hydraulic gear and hydraulic distribution assembly that are captively consumed are not identical with those sold and therefore they should be valued separately under Rule 6 of the Central Excise Valuation Rules. It is also being pointed out that the Revenue's contention in the proceedings before the lower authorities was based on Rule 6 (comparable goods) of the Valuation Rules.