TMI Blog2007 (11) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of Central Excise, Allahabad. 2. Factual background in a nutshell is as follows : The respondents are having two manufacturing units- a distillery at Captainganj and a chemical factory at Barabanki. In their distillery the respondents manufacture Ethyl Alcohol-Denatured (for short 'SDS'). The stock of SDS is transferred to their Barabanki unit where it is wholly consumed in the manufacture of specified chemicals. Under the order of the adjudicating authority the differential duty demand of Rs. 14,89,61,104.00 was confirmed on the entire quantity of SDS transferred from Captainganj unit to Barabanki unit during the period from April 1994 to December 1999. Aggrieved by the above, the assessee filed the appeal before CEGAT. Show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 12.90 1996-97 -do- 10-3-1997 Rs. 14.00 1997-98 -do- 20-11-1997 Rs. 14.75 4/98 to 2/99 Kisan Sahkari Chini Mills, Ghosi 1-12-1998 Rs. 15.50 3/99 to 7/99 -do- 20-3-1999 Rs. 14.25 8/99 to 12/99 -do- 10/99 Rs. 14.25 4. Thereafter, by a corrigendum dated 14-1-2000 sale price fixed at Rs. 14.25 was corrected as Rs. 15/-. On this basis, the differential duty demand, as mentioned, was made. The respondents contended before the adjudicating authority that the entire quantity of SDS manufactured at its distillery is being consumed at Barabanki unit for manufacture of specified articles Molasses which is the major raw ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S during the period in question is as under : 1994-95 Rs. 5.85 per ltr. 1995-96 Rs. 5.50 per ltr. 1996-97 Rs. 5.50 per ltr. 4/97 to 11/97 Rs. 8.30 per ltr. 12/97 to 11/97 Rs. 12.41 per ltr. 4/98 to 3/99 Rs. 13.52 per ltr. 4/99 to 7/99 Rs. 17.43 per ltr. 8/99 to 12/99 Rs. 17.43 per ltr. 6. The respondents further contended that proposal in the show cause notice to fix the assessable value on the basis of the highest price at which one of the manufacturers sold SDS on particular date is totally illegal. It was further contended that for the period from April 1999 to December 1999 the respondents had paid on a higher assessa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). Section 4(1)(a) of the Act is applicable when the buyer is not a related person. Section 4(1)(b) relates to a case where the price is not ascertainable. 9. Stand of the appellant is that comparable price is available because there were two units at Captainganj and Barabanki. The assessee tried to make a distinction by submitting that the product was captively consumed. CEGAT appears to have taken the stand that one day high price cannot be applied even though Rule 6(b) may apply. There is no dispute relating to the period from April 1999 to December 1999. For the period from April 1994 to February, 1999 the same was covered by a show cause notice dated 26-3-1999 and for the period March 1999 it is covered by a show cause notice dated 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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