JUDGMENT

ORDER :— In respect of the civil miscellaneous petition for clarification of this Courts judgment dated 4th November, 1988 (reported in AIR 1989 SC 516), it is made clear that the assessable value of the processed fabric would be the value of the grey-cloth in the hands of the processor plus the value of the job-work done, plus manufacturing profit and manufacturing expenses whatever these may be, which will either be included in the price at the factory gate or deemed to be the price at the factory gate for, the processed fabric. The factory gate here means the deemed" factory gate as if the processed fabric was sold by the processor. In order to explain the position it is made clear by the following illustration : if the value of the grey-cloth in the hands of the processor is Rs. 20/- and the value of the job-work done is Rs. 5/- and the manufacturing profit and expenses for the processing be Rs. 5/-then in such a case the value would be Rs. 30, being the value of the grey-cloth plus the value of the job-work done, plus manufacturing profit and expenses. That would be the correct assessable-value.

2. If the trader, who entrusts cotton or man-made fabric to the processor