TaxTMI 
TaxTMI 
1986 (3) TMI 226
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....The Collector of Central Excise, Baroda in terms of power vested in his under Section 35E(2) of the Act, issued an authorisation vide his letter No. V(68)3-200/83/RC dt. 12-6-1984 (authorisation letter has been signed on 6-6-1984) directing the appellant to file an appeal with this office. In the said appeal, the appellant say and submit that he has erred in vacating the show cause notice 11-3-1983 demanding duty of Rs.157397.76 issued by the Supdt. Central Excise, Range-II Baroda Dn.II to M/s Perfect Engineering Works, Makarpure Road (herein after referred to as Respondents) on the grounds that they were eligible for exemption as envisaged under Notification No. 105/80 Central Excise, dated 19-6-1980 as after deducting sales tax and other ....
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....d has now been taken which is contrary and against the principles of natural justice. They say that they have been submitting monthly and yearly returns to the proper officer. These documents have been signed as token of acceptance of facts and as such there is no ground for willful non-submission or suppression of facts or fraud and hence the period of 5 years under Section 11 A cannot be applied. They argued that none of the Central Excise Officer has asked for inclusion of the cost of raw materials for job charges. They were not aware of the Board's Order dated 26-6-1981. In view of this submission, the subject Show Cause Notice issued to them is completely incorrect and should therefore be discharged. The personal hearing was fixed for ....
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....e Notice dated 11-3-1983 as such these grounds are beyond the scope of show cause notice. If these grounds are considered, it will result into gross violation of natural justice, and making out altogether a new case by the department against the respondents, which is not permissible under the relevant laws. In support of this contention they relied on the decisions (i) XACA (India) Pvt. Ltd., v. U.O.I. (1980 E.L.T. 2277) (ii) Wimco Ltd., v. U.O.I. (1980 E.L.T. 235) (iii) M/s Golden Tobacco Co. Ltd. v. U.O.I. (1983 E.L.T. 2238) (iv) M/s Bush (India) Ltd. v. U.O.I. (1980 E.L.T. 258), (v) JBA Printing Inks Ltd. v. U.O.I. (1980 E.L.T. 121) all of Bombay High Court and (vi) Lakhanpal National Co. v. Collector of Customs 1983 E.L.T., 1830 (Tribun....
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....ances in excess of Rs. 30 lakhs during the preceeding financial year i.e. 1980-81 and thereby the respondents were not eligible for exemption for the clearances made during the year 1981-82. The appellant under his order No. 47/MP/83 dated 12-5-1983 has correctly vacated the Show Cause Notice on the ground that the sales tax is deductible from the assessable value and therefore out of consideration for computing the value of clearances for eligibility of exemption. The appellant has rightly decided that the assessable value is to be determined under the provisions of Section 4 and whatever deductions are permissible under Section 4 are equally applicable for invoice price under Notification No. 120/75. The Honorable Tribunal has also taken ....