2009 (3) TMI 709 - AT - Central Excise

CESTAT Bangalore: Goods Valuation & Duty Liability Ruling

CONZERV SYSTEMS PVT. LTD. Versus COMMISSIONER OF C. EX., BANGALORE

The Appellate Tribunal CESTAT, Bangalore addressed the valuation of goods for demonstration purposes, the applicability of a Board's Circular on duty ... Stay/Dispensation of pre-deposit - Valuation Issues involved:Valuation of goods for demonstration purpose, applicability of Board's Circular on duty liability, time bar plea, pre-deposit requirement for appeal.Valuation of goods for demonstration purpose:The issue in this case revolves around the valuation of goods removed to the assessee's sales office/service center for demonstration purposes. The appellant relied on a Board's Circular for discharging duty liability based on the cost construction method. However, the Department contended that the Circular would not apply in this scenario as it does not qualify as 'sample distributed free'. The Tribunal noted that the appellants may not have a strong case on merits, indicating a prima facie view against them. The question of time bar was raised by the appellant, which the Tribunal decided to examine during the final hearing.Applicability of Board's Circular on duty liability:The appellant based their duty liability calculation on a Board's Circular, citing the cost construction method. However, the Department challenged this approach, arguing that the Circular was not relevant to this specific type of clearance. The Tribunal acknowledged the appellant's reliance on the Circular but indicated a preliminary view against them, suggesting a potential lack of merit in their case.Time bar plea:The appellant raised a plea regarding the time bar, which the Tribunal decided to address during the final hearing. The Tribunal directed the appellant to pre-deposit a specified amount for the appeal's hearing within a set timeframe. Failure to comply with this directive would result in the dismissal of the appeal. The Tribunal also granted a waiver on the balance amount of duty, interest, and penalty upon the initial pre-deposit, with recovery stayed until the appeal's disposal.This detailed analysis of the judgment from the Appellate Tribunal CESTAT, Bangalore highlights the key issues of valuation of goods for demonstration purpose, the applicability of a Board's Circular on duty liability, the time bar plea, and the pre-deposit requirement for the appeal. The Tribunal provided insights into the arguments presented by both sides, indicating a preliminary view on the merits of the case and setting clear directives for compliance and further proceedings.