1997 (2) TMI 211

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pattern was based on contracts entered into with specific buyers which stipulated different prices for different buyers for the same product. Notice dated 12-8-1986 was issued to the appellant stating that during the period April, 1981 to December, 1985 appellant had shown lesser prices in the gate passes but actually sold the goods on certain occasions at higher prices and, therefore, differential duty, as suggested in the notice was demanded from the appellant. Appellant resisted the notice contending, inter alia, that these were cases of diversion of goods. The original consignees whose prices were lower could not take delivery on account of storage difficulty or strike or other factors and to mitigate the loss, the appellant had to dive....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....es. Consignment intended for A who had agreed to pay lesser price than B is cleared from the factory. The gate pass and the invoice which show the name of A will only show the lesser price agreed to by him and when the consignment reaches the destination, A has some difficulty in taking delivery on account of various factors peculiar to him with the result that the appellant has to transport the consignment back to the factory which will result in unnecessary expense or loss. In order to mitigate the loss, the appellant gets in touch with B also in the same place or nearby place and B offers to receive the consignment, at the price already agreed to by him, namely, the higher price. To take another situation where consignment is prepared fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... indicated that the prices for the diverted goods would be the prices agreed to in the contracts entered into with the persons who agreed to take the diverted goods. The reply also stated that all these events were within the knowledge of the Department. The reply to the show cause notice does not clarify as to copies of which invoices were being submitted along with the monthly return, namely copies of the original invoices showing lesser prices or copies of subsequent invoices showing higher prices. If both sets of invoices or at any rate copies of invoices showing higher prices were submitted along with the RT 12 return, there cannot be any case of suppression. If, on the other hand, copies of invoices showing higher prices were not bein....