1991 (12) TMI 154

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ccordingly, they filed price lists under Part-I and got them approved by the Central Excise authorities. While so, two show cause notices were issued by the Collector, show cause notice dated 10-11-1983 for the period commencing from 1-1-1981 to 31-12-1981,1-1-1983 to 31-12-1983, 1-1-1985 to 31-12-1985; show cause notice dated 14-12-1988 for the period from 1-1-1984 to 31-12-1984 respectively proposing to recover duty on the ground that the appellants sold goods at prices higher than the prices approved in the price lists. The appellants filed their reply. On a consideration of the reply, the Collector confirmed the demand of Rs. 10,86,580/- and Rs. 4,70,71/- and a penalty of Rs. 50,000/- for the years 1-1-1981 to 31-12-1981,1-1-1983 to 31-....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d to be a genuine one." 3A. The question therefore, is what should be the assessable value. 4. We may now refer to the allegations made in the show cause notice and it reads as follows: "The prices realised by the company as per the sale bills from their different sale depots were much higher than the prices shown in the factory gate sale bills on the basis of which the declared prices were approved". "Their products are marketed through their different selling centres/depots at Delhi, Jaipur, Ahmedabad, Ludhiana, Bombay, Pune, Madras, Amritsar, Chandigarh, Rohtak, Hapur. Therefore, token factory gate sale price is not the actual value of their products for the purpose of Section 4 of the C.E. & Salt Act, 1944." "The prices declared by ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... date of clearance from the factory............" 6. A reading of the show cause notice and the reply makes it clear that the Department has not denied or doubted the existence of the price in Part I at the factory, gate. Therefore, as long as there is a factory gate price under Part I, it shall be the assessable value even in respect of the sales through their depots in view of the judgment of the Supreme Court in Indian Oxygen v. C.C.E. (supra). It had been categorically held by the Supreme Court that if the ex-factory price is ascertainable, such ex-factory price shall be the basis for determination of value under Section 4 of the Central Excises & Salt Act even in respect of sales through depots. 7. However, it is upon the Department t....