TaxTMI 
TaxTMI 
2014 (11) TMI 703
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....or a period from 1994 to 1997. The respondents withdrew all the show cause notices except the show cause notice issued for a period of January and February, 1995. According to the learned counsel the show cause notices are issued only on the sole basis that nearby sugar factory i.e. Shirpur Sahkari Sakhar Karkhana, Shirpur (hereafter referred as to the "Shirpur S.S.K.") had sold molasses at the rate of Rs. 1310/- per metric tonne, whereas the petitioner has shown the value of molasses at the rate of Rs. 850/- per metric tonne. The petitioner uses the said molasses for captive consumption. According to the learned counsel on the basis of the same facts, all other show cause notices are withdrawn, so on the basis of principle of judicial disc....
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....stand was taken in respect of the show cause notice in question. According to the learned counsel in view of Rule 6(b) of the Central Excise (Valuation) Rules, 1975 the authority was justified in issuing show cause notice, so also the Tribunal has rightly considered the said aspect. The reply to the show cause notice is silent with regard to the quality and its product. 5. We have gone through the show cause notice and the orders passed. It is not disputed by respondents that all other show cause notices issued to the petitioner on the same ground from the year 1994 to 1997 have been withdrawn except the present show cause notice which claims payment of difference of excise duty for a period of two months i.e. January and February 199....
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....cles, the value shall be based - (i) on the value of the comparable goods produced or manufactured by the assessee or by any other assessee : Provided that in determining the value under this sub-clause, the proper officer shall make such adjustment 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; (ii) if the value cannot be determined under sub-clause (i), on the cost of production or manufacture including profits, if a....
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.... through pipeline. The petitioner has captively consumed 7960.40 M.T. of molasses for the month of January and February, 1995. The said molasses is cleared on payment of Central Excise duty taking into consideration the value of molasses at Rs. 850/- per metric tonne. Vide impugned show cause notice a differential Central Excise duty of Rs. 7,32,356/- was proposed to be demanded. The same was based on the ground that during the relevant period nearby sugar factory i.e. Shirpur S.S.K. has sold molasses in the open market at Rs. 1310/- P.M.T. and petitioner valued the molasses captively consumed for payment of excise duty at Rs. 850/- P.M.T. 9. The present matter would be governed by Rule 6(b)(i) of the Central Excise (Valuation) Rules,....
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....he proviso is that, it qualifies the generality of the main enactment by providing an exception and taking out as it were from the main section a portion, which, but for the proviso would fall within the main enactment. 13. The general rule in construing a provision containing a provision containing a proviso is to construe them together without making either of them redundant or otiose. Even if enacting part is clear, effort is to be made to give some meaning to the proviso and to justify its necessity. It is also settled proposition of law that the enacting part should be generally given such a construction which would make the exceptions carved out by the proviso necessary and the construction which would make construction unnecess....
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....a bald averment is made that nearby sugar factory is selling molasses at the rate of Rs. 1310/- per metric tonne. Even, if, arguments of learned Assistant Solicitor General is considered referring to provisions of Sec. 6(b)(ii) of the Central Excise (Valuation) Rules, 1975, same would be of no avail inasmuch as sub-clause (ii) comes into operation, if the value cannot be determined under sub-clause (i) on the cost of production or manufacture including profits, which the assessee would have normally earned on the sale of such goods. Perusal of show cause notice, it transpires that the sole basis for issuing show cause notice is that nearby sugar factory is selling molasses at the rate of Rs. 1310/- per metric tonne and the petitioner is cla....