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2014 (12) TMI 317 - CESTAT MUMBAIUndervaluation of goods - Clearance of goods at lower price to sister concern - Bar of limitation - Held that:- Appellants are clearing “soap noodles” to M/s. Aquagel Chemicals P. Ltd., at lower price than on which they were clearing the goods to sister unit. We also observed that M/s. Aquagel Chemicals P. Ltd., is independently purchasing these soap noodles from independent suppliers on similar price. We also find that duty is payable on finished goods on MRP basis as per Section 4A of the Central Excise Act. Therefore, even if it is presumed that the appellant had supplied the soap noodles to M/s. Aquagel Chemicals P. Ltd., at lower price but the appellant is receiving the finished goods on payment of duty under Section 4A of the Act. When duty is paid on finished goods on MRP basis, the question of under-valuation on the intermediate product supplied by the appellant does not arise. As on the finished goods duty has been paid as per Section 4A of the Central Excise Act, 1944 therefore, on merits the appellant is having a good case. We further find that the appellant has disclosed their selling pattern to the department through a letter dated 9-1-2004 and the Superintendent of the Central Excise has examined the same and thereafter he referred the matter to the Dy. Commissioner for his consideration on 30-1-2004 observing that selling price is the only consideration. The show cause notice issued by invoking extended period of limitation, is barred by limitation - Decided in favour of assessee.
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