2006 (2) TMI 479

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....nt under Section 11AC of the Central Excise Act, 1944 upon the appellant-company and a penalty of Rs. 25,000/- upon its deputy general manager (commercial) under Rule 209A of the Central Excise Rules.   The demand has been confirmed by holding that in respect of clearances of BOPP films to their sister unit at Silvassa, the basis for payment of duty was the comparable price for similar goods cleared to independent buyers, in terms of Rule 6(b)(i) of the Central Excise (Valuation) Rules, 1975. instead of cost construction method in terms of Rule 6(b)(ii) of the Valuation Rules, as adopted by the assessees for determination of assessable value. The assessees do not dispute that the provisions of Rule 6(b)(i) are applicable in the ca....

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....sable goods. The learned SDR also fairly states that the assessee cannot be saddled with any further duty liability. We, therefore, hold that no additional duty liability is cast upon the appellants. Interest levied under Section 11AB and penalty imposed under Section 11AC are also set aside for the reason that there was no delay in payment of duty which was paid prior to the issue of the show cause notice and no duty remained to be determined, so as to attract the provisions of the above mentioned Sections. The appeal of the company is, therefore, allowed. The appeal of the deputy general manager (commercial) is also allowed, as the provisions of Rule 209A of the Central Excise Rules are not attracted against him in the absence of any prop....

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....udication order. 6. We find that the Commissioner has given detailed findings in paragraph 14 for making adjustments as per the proviso to the Rule. His findings are reproduced below:- "14.  What is sold is the BOPP films in the Roll form is being compared with the BOPP films in the Reem form. Obviously, both are not same. I have to keep in mind the following proviso : "Provided that in determining the value under this sub-clause, the proper officer shall make such adjustments as appear to him reasonable, taking into consideration all relevant factors and, in particular, the difference, if any, in the material characteristics of the goods to be assessed and of the comparable goods." In the instant case M/s. Cosmo ha....

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....r kg. conversion charges, and 3.         Rs. 20 per kg. profit margin. I worked out the would be price of film in the Roll form as follows : Price at which sold goods sold in       Rs. 140 - (Rs. If it is Reem form                  Rs. 140/- (...)       10% wastage   Rs. 8 (...)       Rs. 5 per kg. Conversion cost Rs. 5 (...)       Rs. 20 profit on selling reem   Rs. 20 Thus Rs. 107 should have been the price of BOPP film in Roll form. On that basis duty sh....