9911796707
TMI Blog2001 (4) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 2.The petitioner is registered and incorporated under the Companies Act. The product of the petitioner is chargeable with excise duty which used to determine the value of its product from time to time in terms of the provisions of the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act, for short) and the rules framed thereunder. 3.According to the petitioner, in terms of the scheme, the petitioner was obliged to supply and in fact had been supplying goods to the holders of the release orders issued by the Chief Controller of Exports and Imports Bombay at the international price fixed by the Chief Controller of Imports and Exports. The international prices were fixed by the Government and release orders are issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st price list has already been approved by the Assistant Collector of Central Excise, Faridabad. The problems that have arisen are in regard to the acceptance of the second price which is more than 50% less than the normal price. In my view the special price fixed by the CCI&E should be acceptable as a statutory price under the provisions of Section 4(1)(a)(ii) of the Central Excises and Salt Act, 1944. The case would also appear to be covered under Section 4(1)(a)(i) as the buyers can be treated as a different class of buyers. On the question whether the price is the sole consideration I am of the opinion that it is so because the advantages of import replenishment etc. are obtained by the suppliers from the Govt. and not from the buyers. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44, as it stood then, reads as under : "4. Valuation of excisable goods for purposes of charging of duty of excise. - (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to value, such value shall, subject to the other provisions of this section be deemed to be — (a) the normal price thereof, that is to say, the price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal, where the buyer is not a related person and the price is the sole consideration for the sale : Provided that - (i) where in accordance with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether the proviso (ii) appended to the said provision would be applicable to the instant case or not. There cannot be any doubt that the value to be determined for the purpose of computation of excise duty payable on the product would be the normal price thereof i.e. to say the price on which the assessee ordinarily sell its goods in the course of wholesale trade but the proviso (ii) appended thereto, inter alia, makes an exception to the said rule. 9.A price fixed under any law for the time being in force must be given a broad meaning. 10.It is not in dispute that international prices are fixed by the Central Govt. under a scheme. Under the industrial licences the manufacturers are obliged to export 15% of their production. Such a clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire scheme is made under a statutory provisions. A fiscal statute as is well known in case of doubt shall be interpreted in favour of the subject and against the revenue. In K.R. Steel Union Ltd. v. Commissioner of Customs. Kandla [2001 (129) E.L.T. 273 (S.C) = 2001 (4) SCC 736] it has been held : In our opinion, a notification like the one which falls for"10. our consideration (No. 77/80-Cus.) cannot be read in a narrow manner so as to defeat the object of the notification because the notification in question permits the importation of certain second-hand machineries to be used in the manufacture of goods meant only for export in units situated in the defined zones. The object and purpose of such exemption notification is to encou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... materials which though not used in the manufacture of the resultant product are required in order to manufacture the resultant product". 14.Furthermore, there was absolutely no reason as to why interpretation of the Board had not been accepted by the respondent herein. 15.For the reasons aforementioned, we are of the opinion that duty should be charged at the international price and not on the wholesale price. We however direct that the matter relating to refund of the excise duty paid by the petitioner shall be subject to the findings which may be arrived at by a competent authority as to whether the petitioner has passed on the liability to the consumer or not and whether in the event such refund is directed to be made the same would a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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