TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal affirms ex-factory price as assessable value for goods, requiring evidence to challenge; Department's appeal rejected.</h1> <h3>COLLR. OF C. EX., BELGAUM Versus KANARA WOOD & PLYWOOD INDS. PVT. LTD.</h3> COLLR. OF C. EX., BELGAUM Versus KANARA WOOD & PLYWOOD INDS. PVT. LTD. - 1995 (78) E.L.T. 678 (Tribunal) Issues:1. Interpretation of assessable value for excise duty calculation on goods sold through factory gate and sales depots.2. Consideration of ex-factory price as the assessable value for goods sold through depots.3. Application of Supreme Court judgment on ascertainable factory price to determine assessable value.4. Examination of the necessity for remand in case of further enquiries on comparable prices.Issue 1:The Collector of Central Excise appealed against the order by the Collector (Appeals) regarding the assessable value of goods sold through factory gate and sales depots. The appellants had a marketing pattern involving sales at the factory gate and through depots, with a single price list approved by the Assistant Collector. The dispute arose when show cause notices were issued for collecting duty on alleged excess amounts collected during specific periods. The Assistant Collector upheld the demands, leading to the appeals.Issue 2:The respondents contended that the ex-factory price, once approved, should be considered as the assessable value under Section 4(1)(a) of the Central Excises and Salt Act, 1944. The Collector (Appeals) found the Assistant Collector did not adequately consider comparable prices of similar products before determining the factory gate sale price as depressed. Citing the Supreme Court judgment in Indian Oxygen Ltd. case, the Collector (Appeals) set aside the Assistant Collector's orders in favor of the respondents.Issue 3:The Departmental Representative argued that the ex-factory prices were unreasonably low compared to depot sales, invoking the Supreme Court decision in Union of India v. Bombay Tyre International to emphasize the inclusion of all expenses in assessable value for sales through depots. The Departmental Representative contended that the ex-factory prices were not genuine due to being abnormally low, challenging the applicability of the Indian Oxygen Ltd. judgment.Issue 4:The respondents' counsel argued that the ex-factory price, once approved, should not be disregarded unless proven not genuine, citing precedents and the Tribunal's decisions in similar cases. The Tribunal's analysis in the Merinoply & Chemicals case was referenced to support the use of ex-factory price as the assessable value even for sales through depots, unless the Department can establish the price's lack of genuineness. The Tribunal found no evidence to support the Department's claim that the ex-factory price was artificially low, leading to the rejection of the appeal. The decision upheld the Collector (Appeals)'s findings based on the Indian Oxygen Ltd. judgment, emphasizing the necessity for evidence to challenge the genuineness of the approved ex-factory price.
TaxTMI 
TaxTMI 
