Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (11) TMI 1209 - CESTAT HYDERABAD

2016 (11) TMI 1209 - CESTAT HYDERABAD - TMI - Valuation - assessable value - ex-factory sales - Held that: - the factory gate sale prices or ex-factory price are the genuine price and they can be the basis for the assessment of the goods cleared from the depot, the confirmation of demand by the authority is contradictory to the conclusion reached by him and will not therefore sustain. The case laws relied upon by the assessee on settled law as laid down by Hon'ble Supreme Court, in Indian Oxygen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nterest is a post removal expense and hence a permissible deduction. With regard to abatement claimed on freight on sales, it is seen related to expenses incurred by appellant on account of freight charges from depot to the buyer's premises which are clearly post removal expenses and thereby a permissible deduction. - The acceptability and genuineness of ex factory price is incorrect In the light of the discussions herein above, when it has been clearly held that the ex-factory prices are ge .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

der per: Madhu Mohan Damodhara] 1. The present hearing of these appeals has been necessitated consequent to recall of Tribunal Final Order No. 1490/2009, dated 03-12-2009, vide the docket order of CESTAT, Bangalore dated 12-06-2012 which reads as under: "M.A. Allowed. Order passed U/r 41, CESTAT(Procedures) Rules recalling F.O. dated 03-12-2009 and M.O. dated 19-07-2010 and directing both appeals to be listed on 02-07-2012 for hearing. No notice. 2. The department appeal No. E/901/2008 file .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s Depots as a special service to the said buyers. The assessee also cleared a portion of the goods on stock transfer basis and sold the same from the depot on payment of appropriate duty. Upto 31-03-94 (i.e. prior to the amendment of Rule 173 C of the erstwhile Central Excise Rules 1944), the Appellant was filing Price-lists in Part I (meant for sales falling under the erstwhile Section 4(1) (a)) and discharging duty on the ex-factory price, which was the normal price. Thereafter, under the invo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

-02-1995 and 02-05-1995 were issued by the jurisdictional Assistant Commissioner seeking to disallow certain deductions claimed in the declarations filed from 1944 onwards by the appellant and finalise the assessment. The period covered by these show cause notices was from April 1944 to December 1994 and no allegation of suppression of facts etc. was made in any of these notices. 3.2 While the proceedings initiated in the aforesaid Show Cause Notices were pending, another show cause notice dated .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

were created ones and did not represent the normal price and therefore valuation was required to be done on the basis of ex-depot price. As regards the abatements claimed, out of the ten deductions claimed three were disallowed, namely, interest on inventories, interest on receivables and freight on sales. A duty demand of ₹ 1,161,81,601/ was confirmed on the basis of the depot price as reduced by the seven abatements allowed and a penalty of ₹ 13 lakhs was imposed. The assessee cha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e of a genuine ex-factory price on the basis of material produced by the Appellants and the material on record and apply such value. In case, he comes to a finding that such a genuine ex-factory price is not available, then he can proceed to determine the value by granting deductions from the depot prices available after giving an opportunity to the Appellants and applying the law on the subject of eligibility of various discounts. With these directions, appeals are allowed as remand for de novo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t of interest on receivables; c) Abatement on freight on sales. 3.5 The assessee once again challenged the order of the Commissioner in the de-novo proceedings by filing an appeal before CESTAT, Bangalore. 3.6 CES TAT, Bangalore finding that the lower authority had discarded the ex-factory price without going into any evidence to show that the ex-factory price was not genuine, disposed of the appeal by Final Order No. 999 dated 23-06-2005, once again remanding the matter for de-novo adjudication .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

actory gate price. The genuineness of the factory gate price is not dependent on the percentage. It is also seen that the adjudicating authority has not gone into the limitation issue. Therefore, we have no other option but to remand the matter to the original authority. All issues are kept open. The original authority shall give the Appellants a fair hearing and decide the issue in accordance with law within four months from the date of this order . 3.7 In second de-novo adjudication, Commissio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eight on sales; 3.8 Aggrieved by this order, to the extent that the Commissioner has confirmed the duty demand arising out of value determined on the basis of the depot price despite holding that there was a genuine ex-factory price and imposed penalty, the assessee has filed this appeal. 4. The Ld counsel further submitted that assessee had filed price list in Part VI showing that factory price would be same as depot price if all abatable elements like, transportation, inventory charges are exc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Vs CCE Delhi [2008(221)ELT285(Tri.Del) vi) Afcons Infrastructure Ltd. Vs UOI[2006(193)ELT 278-AP] vii) Ronald Pharmaceuticals Pvt. Ltd Vs CCE & ST, Vadodara-l [2014(310)ELT 777 (Tri.Ahmd) viii) CCE Pune Vs Kirloskar Ferrous Indus Ltd. [2010 TIOL-204-CESTAT Mum)] ix) CCE vs Reliance Industries[2015(317)ELT 621(Tri.Ahmd)] 5. We have given our anxious consideration to the detailed submissions made by both sides. 6. It is seen that issue in question was already analyzed in detail by Co-ordinate .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e sales to independent buyers and price thereof is ascertainable. The other point for consideration is whether the low sale turnover at the factory gate as compared to the gross sales turnover could be the ground for alleging that the ex-factory prices are not genuine and representative of normal price as defined under Section 4(1) (a) of the Central Excise and Salt Act, 1944, in the absence of any documentary evidence adduced by the department in support of allegation that the ex-factory price .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ods sold from the depots, provided the ex-factory price is ascertainable and the relative quantum of goods sold ex-factory immaterial. Therefore respectfully following the ratio of the decisions of the Honourable Supreme Court and Tribunals, I am inclined to accept the contention of the assesses and uphold that the ex-factory price would form the basis for the assessment of the goods cleared from the depots . 7. As observed in Tribunal's earlier order, when the adjudicating authority has com .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version