TMI Blog1986 (6) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... regarding determination of the assessable value but modified the same by holding that the demand may be raised for one year from the date of the issue of the show cause notice and not for the extended period for which the demand was earlier confirmed in terms of the Assistant Collector s order. . 3. The brief facts of the case are that the appellants were manufacturing U.F. resin and were consuming it captively. They had filed a price List No. 1/1974 for the year 1974 on the basis of the costing of 1973 and the assessable value for 1974 was approved by the Jurisdictional Superintendent of Central Excise @ Rs. 2.73 per kg., that is, by taking the cost @ Rs 2.48 + 10% profit. Before this price list was approved, the appellants were asked b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct for the period from 1-1-1974 to 31-12-1974. (ii). why the assessable value of urea formaldehyde resin, manufactured and entirely consumed by them during the period from 1-1-1975 to 30-9-1975 should not be determined at Rs. 4.86 per kg. on the basis of costing and margin of profit on cost for the period from 1-1-1974 to 31-12-1974 as calculated in Annexure I, subject to any alteration in the price so approved which may become necessary for any reasons, warranting submission of a fresh price list or an amendment of the list, for approval by the competent authority. The appellants contended that as per the prevailing practice the costing data taken into account should be for the year 1973 for arriving at assessable value. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intendent as early as 23-8-1974 had asked the appellants to furnish data as he felt that there was fluctuation in the element of cost after the last data furnished by the appellants. The authorities still did not apparently feel that any revision of the assessable value was called, for as they approved the price list on 24-10-1974 filed based on the data earlier made available. The need for the revised price was felt when the appellants made data available for 1974 for approval of the price list for the year 1975 and a show cause notice in this regard was issued on 24-10-1975. The price approval earlier accorded for clearance during 1974 was operative till further orders. Provisional assessment was not resorted to nor the appellants were as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad been raising the demand on finalisation of RT-12 returns filed by the appellants or resorted to procedure under Rule 9B for provisional assessment or had been issuing demands in respect of each clearance made by the appellants. This, we find, has not been done. 4. The learned SDR for the Department brought to our notice the judgment in the case of M/s. Premier Automobiles Limited v. A.K. Bandyopadhyay and others : Miscellaneous Application No. 261/76, 1987 (30) E.L.T. 71 (Bom.), copy of which he has furnished. The facts and circumstances are distinguishable from the facts of this case. In that particular case, the government had fixed under the Price Control Order, issued under the Industrial (Development Regulation) Act, 1951, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order and which Petition was, to the knowledge of the Department, pending before the Supreme Court and (4) both the Company and the Department were alive to the fact that the final price was dependent on the decision of the Supreme Court. It is manifest that in these circumstances, the assessments were made, based on the footing of these facts known to both the Company and the Department. To the extent that indisputably the price was provisional and subject to the decision of the Supreme Court, the assessments based as they were on the Company s provisional price as shown in its invoices, were certainly final. If the Department had chosen to demand further duty on the provisional price, the Department would certainly have been in quandary a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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