9911796707
TMI Blog2003 (4) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... and order of the High Court at Allahabad in Civil Miscellaneous Writ Petition No. 1102 of 1995 passed on January 1, 1996. 2.The short question that arises for consideration in this appeal is, whether the High Court is justified in quashing Paragraphs (14) to (18) of the impugned show cause notice dated June 30, 1995. 3.The facts giving rise to this Appeal may briefly be noted. The respondent-assessee manufactures aluminium and its products. The goods manufactured by the assessee were cleared on the basis of valuation under Section 4(1)(a) of the Central Excise Act, 1944 [for short, 'the Act'] during the period 1990-91. On June 30, 1995, the Revenue issued show cause notice purporting to be under Section 11A of the Act demanding duty in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice under Section 11A of the Act, no writ of prohibition ought to have been issued in respect of the alleged incorrect valuation of the goods. 6.Mr. K.K. Venugopal, learned Senior Counsel appearing for the respondent, contends that in regard to valuation, it is the settled position, by a catena of decisions of this Court, that Clause (b) of sub-section (1) of Section 4 cannot be invoked when the goods are sold in the wholesale trade and that they are to be valued under Clause (a) of sub-section (1) on the basis of normal price thereof, therefore, the authority had no jurisdiction to issue the notice and the High Court has rightly issued the prohibition in regard thereto. His further submission is that if two causes are clubbe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nearest ascertainable equivalent thereof determines in such manner as may be prescribed. (2) and (3)xxx xxx xxx (4)For the purposes of this section, - (a)'assessee' means the person who is liable to pay the duty of excise under this Act and includes his agent; or (b)'place of removal' means - (i) a factory or any other place or premises wherein the excisable goods have been permitted to be deposited without payment of duty, (ii) a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without payment of duty, from where such goods are removed; (c)xxx & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not concerned with the provisos thereto. Clause (b) thereof says that where the normal price of such goods is not ascertainable for the reason that such goods are not sold or for any other reason the nearest ascertainable equivalent thereof determined in such manner as may be prescribed. For determination of the value under Clause (b), Rules 1 to 7 of the Central Excise Valuation Rules, 1975 apply. It is, thus, clear that where duty of excise is chargeable on the excisable goods with reference to value, the normal price at which the goods are ordinarily sold to a buyer by the assessee in the course of wholesale trade for delivery at the time and place of removal will be the measure of charge. This is subject to (i) the buyer is not the rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnoring the price under Clause (a) of sub-section (1) of Section 4, the authority lacks jurisdiction to issue notice calling upon the assessee to show cause in the matter. 11.There can be no doubt that in matters of taxation, it is inappropriate for the High Court to interfere in exercise of jurisdiction under Article 226 of the Constitution either at the stage of show cause notice or at the stage of assessment where alternative remedy by way of filing a reply or appeal, as the case may be, is available but these are the limitations imposed by the Courts themselves in exercise of their jurisdiction and they are not matters of jurisdictional factors. Had the High Court declined to interfere at the stage of show cause notice, perhaps this Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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