TMI Blog2015 (12) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... t, dividends and capital gains from such investment enabled them to meet the working capital requirements which resulted in lowering their capital borrowings. The Tribunal, after re-examining the entire material that was produced before it by the assessee, noted that the overall effect of the deposit on the financial position of the company or its profitability had no direct relevance to the dispute. It found that for excise valuation, the relevant consideration was as to whether the deposits had the effect of lowering the sale prices of the motorcycles or whether the sale prices were normal sale prices unaffected by the deposits. It is clear that each and every aspect of the issue is examined, on the basis of which finding is arrive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Commissioner who passed the Order-in-Original whereby he included the fact of deposit of ₹ 500 to the price of the motorcycle and thereby arrived at the valuation of the said motorcycles for the purpose of excise duty. In this manner, a differential duty of ₹ 2 cores along with penalty of ₹ 50 lakhs was demanded. Aggrieved by that order, the assessee filed appeal before the Customs, Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as 'Tribunal') which was allowed by the it vide orders dated 06.10.1998. Against that order, the Department came in appeal before this Court. This Court, after considering the matter, remanded the same to the Tribunal for fresh disposal. The reason for the rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the profits of the company have been based on implication of Sales with Other Incomes. For example, for the year 1985-86, Sales Other Incomes were of ₹ 49.20 crore(rounded to '0') out of which Income from Sales was ₹ 45.02 crore(Round to '0') whereas ₹ 4.06 crore was on account of other Income. Therefore, according to the adjudicating authority, the total income (Sales Other Income) contributed to the profits which had a direct impact on pricing. According to the adjudicating authority the said Other Income had contributed to the pricing. That, but for the said other Income , it was not possible for the company to sell the motorcycles at a price lower than the unit cost of production. Lastly, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and Service Tax Appellate Tribunal (hereinafter referred to as 'Tribunal') again challenging the order of the Commissioner. The finding of the Commissioner was that the huge amount of customers' booking advances were used to meet their working capital requirements as well as were partly invested in deposits/securities. On that basis, he concluded that the interest, dividends and capital gains from such investment enabled them to meet the working capital requirements which resulted in lowering their capital borrowings. The Tribunal, after re-examining the entire material that was produced before it by the assessee, noted that the overall effect of the deposit on the financial position of the company or its profitability had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not yield a positive margin. From these, it is clear that company did not follow a cost-plus profit approach while pricing the motorcycles. This also confirms the submission of the learned Senior Counsel that the prices were market driven and motorcycle manufacturers could not follow a cost of production plus reasonable profit pricing policy. It is clear from the above that each and every aspect of the issue is examined, on the basis of which finding is arrived at that the price of the motorcycle manufactured by it were market driven and it did not follow a cost of production plus reasonable profit pricing policy. These are finding of facts which are arrived on the analysis of the evidence produced before it and do not call for any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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