2013 (4) TMI 467 - AT - Central Excise

Appeal allowed, case remitted for verification of company deductions on equalized basis. Expertise required, unnecessary requests avoided.

M/s DABUR INDIA LTD. Versus COMMISSIONER OF CENTRAL EXCISE. GHAZIABAD

The Tribunal allowed the appeal, remitting the matter to the adjudicating authority for verification of deductions claimed by a company for freight, local ... Valuation - Deductions on equalized basis - sale through depot - deductions from the invoice price on account of freight, local taxes, additional trade discounts etc on equalized basis - Held that:- it is not open to the adjudicating authority to deny the impugned deductions, claimed on equalised basis, since the order of the Tribunal dated 15-06-09 and the order of the Allahabad High Court dated 05-04-2011 were not appealed against - verify the correctness of the figures claimed by the appellants and not pass any order on the issue whether such deductions can be allowed. Secondly we note that the appellant is a multi-locational, multi-products company with turnover of more than Rs. 4000 crores. The Appellants have produced certificate from a chartered accountant certifying the correctness of deductions claimed. If the adjudicating authority is not satisfied with the certificate he may cause verification as deemed necessary by him. - If the adjudicating authority is rejecting the certificate given by the chartered accountant the reasons why the certificate is factually not correct should be recorded. - Decided in favor of assessee. Issues:Dispute over deductions claimed on equalized basis for clearances from factory, Adjudication of deductions claimed on freight, local taxes, and trade discounts, Provisional assessment findings, Appeal against Commissioner (Appeal) order denying deductions, Compliance with Tribunal and High Court orders, Justification of impugned order due to lack of documents, Waiver of pre-deposit requirement for appeal admission, Disposal of appeal and remittance to adjudicating authority with directions.Analysis:The case involved a company with multiple factories clearing goods to depots nationwide, claiming deductions on freight, local taxes, and trade discounts on an equalized basis. The Revenue disputed these deductions, leading to a show cause notice for denying the deductions claimed in the assessable value for the period 2002-03 to 2004-05 from the Sahibabad factory. The adjudicating authority found the assessment provisional based on executed bonds and circulars, denying the deductions as actuals were not proven.The appellants appealed to the Commissioner (Appeal), citing Tribunal and High Court orders allowing similar deductions at other units. The Commissioner (Appeal) upheld the Revenue's stance, leading to the present appeal before the Tribunal. The appellants relied on previous Tribunal and High Court orders supporting their deductions, arguing against the Commissioner (Appeal)'s decision.During the proceedings, the Revenue argued that the impugned order was justified due to the appellants' failure to provide documents supporting claimed deductions. The Tribunal found the impugned order disregarded previous Tribunal and High Court decisions, waiving the pre-deposit requirement and setting aside the lower authorities' orders. The matter was remitted to the adjudicating authority with specific directions.The Tribunal clarified that the adjudicating authority could not deny the deductions claimed on an equalized basis, directing verification of figures claimed without deciding on the allowance of deductions. Considering the company's size and complexity, the adjudicating authority was instructed to verify the calculations with appropriate expertise and avoid unnecessary document requests. The stay petition and appeal were disposed of accordingly, emphasizing the need for proper verification without prejudging the deductions claimed.