1998 (2) TMI 353

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....r parts of the country are to the extent of 92%. Therefore, it was alleged by the Revenue that it was only a token price at the factory gate being not genuine and consequently, the Revenue proposed to make the assessment on the basis of the depot prices. 2. A show cause notice was issued to recover a demand of over Rs. 12.00 lakhs for the period of 1st January, 1982 to 31-12-1982. The show cause notice was dated 26-11-1986. The adjudicating authority has confirmed a demand of Rs. 2,20,517.83 and has imposed a penalty of Rs. 10,000.00 on the appellants under Rule 173Q of the Central Excise Rules, 1944. In confirming the aforesaid demand of duty, following findings have been made by the adjudicating authority :- I have carefully examin....

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....rice at the factory gate is genuine. There was no evidence for the Department to hold that the price at the factory gate was not genuine. Therefore, the demands of duty raised by the Department were set aside. In the present case also, he submits that there is no evidence produced by the Department to indicate that the sales made by the factory were in any way not genuine. He submits that all the sales were made totally to independent persons who had no connection with the appellants herein. All sales were at arm's length. Similar was the position in the case before the Tribunal. He, therefore, submits that similar view should be taken as has been taken by the Tribunal in its Final Order dated 5-12-1991 (supra). 5. Opposing the conten....