2004 (3) TMI 630

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....ich is impugned before us. 2. The appellants manufacture stainless steel flats (SS flats). The appellants cleared the said product viz. SS flats to several independent customers as well as to 8 declared consignment agents (C.As.). The duty has been paid on the basis of normal price, declared under Rule 173C of the Central Excise Rules, 1944 (Central Excise Rules). Out of the 8 consignments agents located at three different places in respect of certain consignments cleared to one C.A., namely, M/s. Ram Kumar, Kishan Kumar (RK, KK) during the period of 5 months (Feb., 1997 to June, 1997), it was revealed, that the appellants realised additional consideration over and above the declared price, covering the sale of 4841.495 MTs of SS flat....

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....t agent during the period outside the period covered in the demand notice. It is their defence that, the quantity of S.S. flats, transferred to M/s. RKKK, was subsequently sent by the said M/s. RKKK to independent job workers, for their conversion into patta/pattis and the sale proceeds of patta/pattis was repatriated by M/s. RKKK to the appellant which happened to be at the rate of Rs. 60 per kg. (approx.). The sale proceeds relate to the sale of patta/pattis and the allegation that the S.S. flats were sold at a price of around Rs. 60 per kg. is not correct. 4. Heard both sides. 5. We note that the basic issue is, as to whether or not, the differential price on which duty has been demanded, pertains to the sale of S.S. patta/pa....