2010 (3) TMI 604

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....paying duty on CTV in terms of Section 4 of the Central Excise Act. From the said date, they paid duty on the goods on the basis of MRP in terms of Section 4A of the Act considering the fact that the product was notified by the Central Government for MRP-based assessment to duty. The department, upon security of the records of the assessee, found that the invoices issued by them at the time of clearance of the goods from the factory after 16-9-1997 indicated both the assessable value under Section 4 and the MRP under Section 4A. For instance, the invoice dated 18-11-1997 covering the clearance of 28 CTV sets to one of their dealers (depots) at Bangalore showed assessable value as Rs. 27,537/- per set and the MRP to be Rs. 15,500/- per set. ....

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....Section 4 in the invoice might have been recovered by the assessee's dealer (depot) from the ultimate consumers as is evidence from the fact that the assessee was alleged to have failed to declare the depot sale price inclusive of all expenses. In adjudication of this show-cause notice, the original authority dropped the proposal after holding that no additional consideration was given by the assessee to their depot and that the depot at Bangalore sold CTV sets to customers at the rate of Rs. 15,000/-. The order of adjudication was reviewed by the Commissioner and accordingly an appeal was filed with the Commissioner (Appeals). The learned Commissioner (Appeals) allowed that appeal and ordered for reassessment. The present appeal of the ass....

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....the assessee to their Bangalore depot tallies with this declaration in all material particulars. From these documents, it is clear that each CTV set which was priced at Rs. 27,537/- for purposes of Section 4 of the Act prior to 16-9-1997, was sold to the depot at the discounted price of Rs. 12,470/-. Apparently, it was on the basis of this discounted price of the goods that the assessee worked out MRP by adding the amount of duty payable in terms of Section 4A and the amount of sales tax payable under the relevant Sales Tax Act. 30% abatement was claimed from this MRP of Rs. 15,500/- and duty was paid on the net amount. After stating this fact of the case, the authorized representative of the assessee prays for setting aside the impugned or....