2005 (11) TMI 10

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..... of over Rs. 25 crores and penalty of Rs. 1.25 crores imposed under the impugned order of the Commissioner of Central Excise. The duty demand is in respect of goods cleared by the appellant from its Bhilai factory during the period October 1998 to March 2000. The goods in question were first re moved to the depots of the assessee and sold from there to independent buyers. 2. At the time of clearan .....

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..... legally unsustainable. The Commissioner overruled those objections and the demands were confirmed and penalty imposed. 5. Before us the submission being made by learned Counsel for the appellant is that, it is well settled that the assessable value for a consignment under removal to a depot is the sale price for such goods, at the depot to which the consignment is removed at the time of removal o .....

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..... eing placed on the decision of this Tribunal in the case of Brakes India Ltd. v. Commissioner - 2005 (184) E.L.T. 179. It is being pointed out that this decision of the Tribunal has been confirmed by the Apex Court. 7. We find merit in the contention of the appellant in regard to the relevant price for the purpose of valuation. It is clear from the terms of the section itself that valuation of a .....

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..... d that the appellant had established before the lower authorities that the price realized from the buyers of the goods from the depots were invariably lower than the price at which the goods had been assessed to duty at the time of their removal from the factory. The ABRs in question were determined by the Central Marketing Organisation of the steel plant on a monthly basis and conveyed to the sal .....

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..... Central Excise duty. In the present case, it is clear that the valuation adopted by the appellant was only more than the net realisation at the depot stage. That being the factual position, the finding of the Commissioner that the rebate was not passed on and that differential duty is payable by the appellant is not sustainable. 9. In view of what is stated above, we hold that the entire duty dem .....

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