TaxTMI 
TaxTMI 
1987 (6) TMI 265
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctor, Central Excise, Calcutta. 2. Factual backdrops: The appellant company carries on the business inter alia of manufacturing and dealing in commercial plywood and tea-chest plywood and cleared from their factory at Port Blair 10,903.11 sq. mtrs. and 50,356.39 sq. mtrs. of commercial plywood of different sizes (claimed to be rejected/defective) in the month of March-April 1978 on payment of duty of Rs. 9,378.71 and Rs. 70,055-81 respectively, but without submitting any price list and despatched the consignment to self, Madras. Since, according to the Department, the appellant company cleared the aforesaid quantities of plywood falling under T.I. 16B of the First Schedule to the Central Excises & Salt Act, 1944, without submitting any p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the said order of the Assistant Collector was not proper, legal and correct and consequently, Collector of Central Excise in exercise of powers conferred upon him under Section 35A(2) of the Central Excises & Salt Act,1944, issued a Show Cause Notice to the appellants to show cause as to why the said order of the Assistant Collector be not set aside and necessary orders as deemed fit be not passed. In reply, the appellant company reiterated the stand which was taken by them before the Assistant Collector and submitted that the order passed by the Assistant Collector was proper, legal and correct, and therefore, the Show Cause Notice in question issued by the Collector of Central Excise be cancelled. However, the said defence of the appellan....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... case in hand after salvage of the defective/rejected quantities, the Company intially sought permission of the Assistant Collector vide their letter dated 1.12.77 to sell the goods in auction, but in the meantime, the Head Office of the appellant company invited offers from different customers and the highest quotation received was taken as assessable value for the purpose of duty under Section 4 of the Central Excises & Salt Act. He further submitted that the appellant company also negotiated for sale of the impugned defective/rejected commercial plywood and received quotations from different customers for the purchase of such defective/rejected commercial plywood as would be evident from the copies of the quotations submitted by the cust....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... quotations obtained by their salesman do not have any iota of genuineness. It is obvious that the so-called quotations have been obtained for the purpose of claiming the assessment of plywood on the basis of the so-called quotations prices rather than on the basis of tariff values. Moreover, normally the said Company have always been selling damaged/rejected goods by auction and not by sending their representative to a few selected dealers and obtain the so-called quotations. For the reasons stated above I hold that the assessment of the goods on the basis of the so-called quotations from the dealers is a ruse to hoodwink the Govt. in the matter of payment of duty." We have ourselves gone through the entire evidence on record and have s....