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2009 (11) TMI 367 - AT - Central ExciseAdditional ground- The appellants are engaged in manufacture of air texturised yarn. The ground that the value cleared by them through 4 consignment agents was not determined as per the provisions of Section 4(1)(b) of Central Excise Act, 1944 read with Rule 7 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (‘Valuation Rules’ for short). Penalty of equal amount has been imposed on the company and penalty of Rs. 10 lakhs on Shri Shrikant Mundra, Director of the Company and Rs. 1 lakh on Shri P.G. Sharma, authorized signatory of the company, have also been imposed. Held that- whatever was the duty they were paying at the factory gate in respect of the goods sold by the consignment agent, when the price of the factory gate was lower than the price charged by the consignment agent was totally without any intention to evade duty. The matter is remanded to the original adjudicating authority who shall decide the issues relating to the determination of assessable value and calculation of duty in terms of our observation in this order and also in the light of judicial pronouncements.
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