TMI Blog2001 (1) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 1944 read with Section 11AC of Central Excise Act, 1944. Interest in terms of Section 11AB of the Act has also been confirmed. Confiscation of land, building, plant, machinery etc. has been ordered with an option to the appellant to redeem the same on payment of redemption fine of Rs. 5 lakhs. 2. The brief factual background of the case is as under:- 2.2 The appellants are engaged in the manufacture of aluminium rolling ingots in their factory at Belgaum. The entire production of the appellants factory is transferred to its sister unit at Taloja, which is captively consuming the same for manufacture of aluminium coils and sheets. The dispute involved in the present appeal relates to the valuation of rolling ingots manufactured by the appellant. 2.3 During the period relevant for the purposes of the present appellant, the appellants have been clearing the rolling ingots on payment of duty on the assessable value arrived at in terms of Rule 6(b)(i) on the basis of comparable goods. During the period 1-7-1996 to 20-2-1997, the appellant declared the price in the price declaration as Rs. 66,800/- per metric ton based upon the value of the commercial grade ingots manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BALCO s flat ingots is different from rolling ingots produced by the appellant the two are not comparable. He submits that in fact due to the difference in purity and alloy composition, the appellant has already added 1% to the value of M/s. BALCO s flat ingots and has indicated the same in Column 7 of their price declaration filed in Form 2C. Rule 6(b)(i) itself requires making of such adjustments on account of the difference in material characteristics of the goods in question and the comparable goods and for such difference the provisions of Rule 6(b)(i) are not to be ignored, as has been held by the Tribunal in the case of Synthetics Chemicals Ltd. v. CCE - 1992 (57) E.L.T. 480 (T). Shri Sreedharan has also drawn our attention to the technical literature showing various aspects of unwrought aluminium to buttress his point that flat ingots and rolling ingots are same form of metal. He has also referred to number of technical books on the aluminium casting principle as also to ISI standards to strengthen his arguments that the ingots can be casted into various shapes depending on their end use and the market price of unwrought aluminium in different forms and shapes is the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... piece, being Rs. 1,00,000/50,000 units, i.e. total overheads divided by normal production. He submits that the installed capacity of their plant was 75,000 metric ton, but because of power problem, the plant operates at substantially lower capacity during the period in question and as such the cost might have gone up. If the cost of production computed in accordance with the settled principles of cost accountancy is computed the same would be at par with the assessable value adopted by them. He also submitted that since the appellant is a loss making unit, addition of profit of margin is also incorrect. He refers to certain decisions of the Tribunal on this point specifically the Tribunal s decision in the case of ITC v. CCE, Meerut - 1999 (32) RLT 440 (T). He submits that except for the period February 1997 to June 1997 declared assessable value is much higher than the cost of the metal. Hence the show cause notice alleging otherwise is incorrect. 5. Shri Sreedharan also submits that whatever duty was being paid by them was available as Modvat credit to their own unit at Taloja. Hence there was no intention on their part to evade payment of duty. The whole exercise is revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants failed to disclose the relevant and vital information regarding valuation of the goods for the purposes of correct and legal valuation. As such he submits that the longer period has been rightly invoked by the adjudicating authority. 8. After hearing both the sides, we find that the appeal can be disposed of on the point of limitation. The show cause notice has been issued on 6-3-2000 in respect of the clearances of rolling ingots made by the appellant during the period 1-7-1996 to 31-1-1998. The appellants have referred to the Asstt. Commissioner s letter written on 5-1-1996 directing the appellant to furnish copy of the latest Calcutta office price list for all marketed products along with a copy of the inter-office memo of the Calcutta office directing the appellants unit to follow these prices for determining the assessable value. The appellants vide their letter dated 16-1-1996 complied with the above directions and enclosed the price list applicable at head office and also disclosed that the same is being followed in respect of despatch made to their sister unit Taloja. Inter-office memo dated 4-8-1995 indicating sale price of commercial grade ingots to be Rs. 66,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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