2003 (8) TMI 313

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....hich price had been fixed under the Drugs Price Control Order (herein after referred to as DPCO) when the said drugs are not only captively consumed but are also sold to the appellants' loan licensees at the DPCO prices and various other manufacturers also manufacture the same bulk drug have to sell it and actually sell it at the DPCO price. (b)         On limitation as the show cause notice is dated 30-3-1997 and demands duty for the period 1-2-1992 to 29-2-1996. When except for a bald statement on the last page of Annexure-A to the show cause notice that : "The above short payment is the result of misdeclaration/suppression of fact by M/s. Parke Davis (India) Limited while declaring/paying the....

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....eld that "Adaption value goods not sold or sold at a different price would be impermissible as it would amount to extension of legal fiction beyond the purpose for which it is created". Section 4 is very clear on how the assessable value is to be computed. And order "I demand the Central Excise duty of Rs. 42,23,995.18 under Section 11A of the Central Excise Act, 1944 read with Rule 9(2) of Central Excise Rules, 1944. I also impose penalty of Rs. 42,23,995.18 under Section 11AC of the Central Excise Act, 1944. Interest at the rate of 20% per annum is also recoverable from them under Section 11AB ibid." 3. After hearing both sides and considering the matter on record it is found that :- (a)      &n....

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....ince been paid. It was the submission of the learned advocate for the appellants, that this material on record would indicate that DPCO prices were being accepted by the department for very said bulk drugs captively consumed by them. No counter to this plea was made by Revenue or as has been arrived at in the impugned order. (c)          Perusal of the reasoning; as extracted herein above and arrived at by the learned Commissioner, is found, that it has been held, that the said bulk drug and its sales are to their sister concern, who are related persons, as per Central Excise Act, 1944, and as such sister concerns were consuming the said bulk drugs captively, it would require the determination....

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....(e)         A perusal of the Central Excise (Valuation) Rules, 1975 specifically Rule 6, which read as follows :- 'Rule 6 in if the excisable goods under assessment cannot be determined under Rule 4 or Rule 5 and'                indicates that Rule 4 or Rule 5 have to be specifically ruled out before one proceeds to apply provisions of Rule 6 as in this case. In the present case there is material available that goods are sold not only by the appellant but by many other manufacturers at DPCO prices fixed for the goods. Therefore it is clear that value of the excisable goods under determination in this case, could be based on th....