1997 (6) TMI 307 - AT - Central Excise

Partial success for M/s. Krishna Industrial Chemicals in appeal on assessable value & penalty; dismissal for others.

The appeal of M/s. Krishna Industrial Chemicals Pvt. Ltd was partially allowed, with adjustments in assessable value computation and penalty upheld. The ... Valuation Issues:1. Assessment of additional amounts collected by appellants.2. Revising assessable value for goods sold to specific firms.3. Claim for abatement of additional sales tax.4. Penalty imposed on the appellants.Analysis:Assessment of Additional Amounts:The appellants were penalized for collecting extra amounts beyond invoiced values through debit notes and selling goods at lower prices to specific firms. The consultant argued that total realization should be considered as cum-duty price for computing assessable value. However, the tribunal held that the extra realizations must be included in the sale price, allowing deductions under the law.Claim for Abatement of Sales Tax:The consultant sought abatement of additional sales tax, which was denied by the lower authority due to failure to claim it earlier. The tribunal emphasized that duty demanded should not exceed what is legally due, considering amounts already paid by the appellants, despite not seeking abatement previously.Revising Assessable Value for Specific Firms:The tribunal noted discrepancies in assessable values for goods sold to specific firms compared to other customers. It directed a re-computation of assessable value based on Valuation Rules, as the lower authority did not adequately consider relevant factors. The matter was remanded for a fresh decision.Penalty Imposition:The appellants were penalized for suppressing extra realizations and misusing invoicing facilities. The tribunal upheld the penalty of Rs. 50,000, considering the appellants' actions as deliberate evasion.Conclusion:The appeal of M/s. Krishna Industrial Chemicals Pvt. Ltd was partially allowed, with adjustments in assessable value computation and penalty upheld. The tribunal dismissed appeals of the other two appellants due to non-representation.