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2019 (5) TMI 955 - AT - Central ExciseValuation - PVC pipes - determination of correct transaction value as per Section 4(1)(a) of the Central Excise Act, 1944 - supply under rate contract - mis-declaration of price - whether the price i.e. ₹ 122/- per meter at which the pipes were agreed and supplied to the MID, Jharkhand State govt is the correct transaction value or the price at which initially the pipes were supplied to dealers @ ₹ 52/- per meter, who in turn, subsequently sold the same to MID, Jharkhand State Govt. @ ₹ 122/- per meter, be the basis for computation of duty? HELD THAT:- There is no dispute of the fact that a tender was floated by the MID, Jharkhand State Govt. for supply of PVC pipes and the respondent was the successful bidder. Many conditions have been prescribed in the tender which includes technical qualification of the bidder, time frame of supply of the pipes including the rate at which the pipes would be supplied. There is also no dispute of the fact that the pipes of requisite specification manufactured by the respondent at their Jalgaon factory and initially cleared to the dealers/distributors, who in turn, supplied it to the MID, Jharkhand State Govt. This Tribunal has already considered more or less similar facts and circumstances in Bright Drugs Industries Ltd.’s case [2016 (7) TMI 298 - CESTAT NEW DELHI]. In the said case, M/s Bright Drug Industries Ltd. was engaged in the manufacture of pharmaceuticals product and P&P medicaments, entered into rate contract with the Maharashtra Govt. as also with some other govt. agencies for supply of medicaments on an agreed price in response to the tender floated by the said govt. agencies. Medicaments were required to be floated by the appellants. The transaction between the respondent and the dealers cannot be considered as true transaction value within the meaning and definition of “transaction value” prescribed under Section 4(3)(d) of Central Excise Act, 1944. Consequently, the price at which the goods were agreed to be supplied by the respondent to MID, Jharkhand State Govt. be the correct transaction value and duty is required to be paid on same. Extended period of Limitation - penalty - HELD THAT:- The respondent had knowledge of the fact that true transaction value of the pipes is ₹ 122/- per meter, the fact which they on oath also disclosed before the Hon'ble Jharkhand High Court, hence, the safe inference that can be drawn that relevant facts though within the knowledge of the respondent but suppressed from the Department relating to the clearances made by the respondent to the MID, Jharkhand State Govt. Hence, extended period of limitation is rightly invoked and also penalty has been correctly imposed by the adjudicating authority. The order of the adjudicating authority is restored - Appeal dismissed - decided against Revenue.
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