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of <h1>Tribunal rules on assessable value in M/s. Rewa Fans Industries vs. M/s. Ravi Marketing case</h1> <h3>M/s. Rewa Fans Industries And M/s. Ravi Marketing (P) Ltd. Versus Commissioner of Central Excise, Bhopal</h3> M/s. Rewa Fans Industries And M/s. Ravi Marketing (P) Ltd. Versus Commissioner of Central Excise, Bhopal - TMI Issues:1. Assessable value determination for goods sold to distributor and related parties.2. Imposition of penalty on artificial person.Assessable value determination for goods sold to distributor and related parties:The case involved M/s. Rewa Fans Industries (RFI) appealing against the demand of duty confirmed and penalty imposed, and M/s. Ravi Marketing Pvt. Ltd. (RMPL) appealing against the penalty imposed under Rule 209 A of the Central Excise Rules, 1944. The dispute centered around the inclusion of commissions given to M/s. P D Vyas & Co. (PDV) in the assessable value during the periods of January 1986 to August 1987 and September 1987 to November 1988. The Revenue contended that the commissions and discounts should be included in the assessable value. The Tribunal observed inconsistencies in the show cause notice and impugned order regarding the role of PDV as a commission agent. The Commissioner (Appeals) held that the assessable value should be based on the price charged after discount for goods sold to PDV as a sole distributor, and the price at which goods were directly sold to consumers. The appellant argued that the assessable value should be the price at which goods were sold, citing the decision in Elgi Equipments Ltd. vs. CCE, Coimbatore [2007 (215) ELT 348 (SC)]. The Tribunal, referring to the Elgi Equipments Ltd. case, held that the price at which goods were sold to PDV and RMPL should be the assessable value for the respective periods, setting aside the demands for the earlier period and confirming the assessable value for the later period.Imposition of penalty on artificial person:Regarding the penalty imposed on RMPL, the appellant contended that penalties should be imposed on real persons, not artificial entities. The Tribunal found no malafide intent on the part of RFI for duty underpayment, thus ruling out the imposition of penalty. As RMPL had acknowledged the correct assessable value, the Tribunal set aside the penalty imposed on RMPL. The Tribunal concluded by disposing of the appeals accordingly, setting aside penalties and determining the assessable value based on the prices at which goods were sold to the relevant parties for the respective periods.
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