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TMI Blog2024 (7) TMI 1397X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissionerate, alleging that they had undervalued the goods sold from their depot and consignment agents resulting in evasion of Central Excise Duty to the tune of Rs.28,20,514/- (both the Notices together). The demand raised covers the period from 2006-07 to 2010-11. During the material period, the appellant manufactured 2865 types of Aluminium extruded shapes and sections and transferred the same to one depot located at Delhi and to six consignment agents located at various places of the country, from where the excisable goods were sold to unrelated buyers. For the purpose of payment of duty in respect of the goods cleared to their depot and consignment agents, the appellant were following Rule 7 of the Central Excise Valuation (Determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, the assessment is deemed to be considered as provisional. Hence, the adjudicating authority should have adjusted the excess receipt and short payment and arrived at the demand, if any, payable by the appellant. The ld. appellate authority has not accepted the contention of the appellant and rejected the appeal filed by them vide the impugned order. 4. Aggrieved against the rejection of their appeal, the appellant filed the present appeal. 5. The appellant submits that they have calculated the price of goods actually sold in a year by taking the price of opening stock plus goods sent and subtracting the value of closing stock to arrive at the price of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consignment agents' end at a higher price, calculated on yearly basis. 5.2. The appellant has relied upon the Board Circular No. 251/85/96-CX. Dated 14.10.1996 wherein it has been clarified that in case of inter-depot transfer of goods, duty may be initially charged with reference to the place of removal from where goods are actually removed / intended to be sold and by charging differential duty, if any, on the basis of the assessable value prevalent at the actual place of removal i.e., the storage depot, etc., from where the goods are finally sold; they have followed the procedure prescribed in the Circular and therefore the question of demanding any differential duty at a later point of time does not arise. 5.3. Accordingly, the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n value of such goods sold from such other place at or about the same time and, where such goods are not sold at or about the same time, at the time nearest to the time of removal of goods under assessment." 8.1. We observe that the appellant has adopted the method of payment of duty as mentioned above in Rule 7 of the Central Excise Valuation Rules, for the clearances effected to their depot and consignment agents. Once duty has been paid at the time of clearance from their factory as provided under Rule 7 supra, the appellant is not liable to pay any differential duty based on subsequent sale of the same goods from the depot or consignment agents, at a higher price to independent buyers. In this case, we also find that the ld. adjudicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt agents subsequently to independent buyers. In view of the above, we hold that the appellant is liable to the differential duty only to the extent of Rs.23,052/- confirmed in the impugned order along with interest. 11. We observe that the issue involved in this case related to valuation of clearances effected through the depot and consignment agents of the appellant. There is no suppression of fact with intention to evade payment of tax established in this case and hence, we hold that no penalty is imposable on account of confirmation of the above said demand. 12. In view of the above discussion, we pass the following order: - (1) We uphold the confirmation of demand to the extent of Rs.23,052/- along with interest on account of non-i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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