TaxTMI 
TaxTMI 
2022 (9) TMI 269
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....pugned judgment and order dated 06.02.2008 passed by the High Court of Judicature for Rajasthan at Jodhpur in Tax Reference Civil No.26 of 2004, the dealer - assessee has filed the present appeal. 2. The facts leading to the present appeal in a nutshell are as under: 2.1 That the appellant - assessee is a manufacturer of plastic moulded furniture. The assessee submitted a claim for refund of the excise duty, on the basis of its having accepted the rejected goods, returned to it by its distributors, for which it had issued credit notes to the parties. 2.2 It was the case on behalf of the assessee that the assessee is entitled to the refund to the extent of the value of the returned goods under Section 173L of the Central Excise Act and th....
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....y report was not furnished to the assessee. It was also the case on behalf of the assessee that the Department wrongly treated the returned goods as scrap and thereby committed serious error in arriving at the value of the returned goods at Rs.8 to 10 per kg and thereby denying the refund to the assessee. 2.4 By the impugned judgment and order the High Court has rejected the reference by observing that the value determined by the Department at Rs.8 to 10 per kg was on appreciation of evidence and after giving opportunity to the assessee and relying upon the market survey report(s) which was neither asked by the assessee nor challenged by the assessee and the determination of the value at Rs.8 to 10 per kg can be said to be the question on ....
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....the defects. In some returned goods the defect might be 5% and in some goods the defect might be 80% to 90%. Therefore, the assessee has to lead the evidence with respect to each consignment of the returned goods, which the assessee failed to prove in the present case. The Department heavily relied upon the market survey report and thereafter determined the value of the returned goods as Scrap at the rate of Rs.8 to 10 per kg. The assessee participated in the proceedings before the Deputy Commissioner. The assessee neither asked for copy of the market survey report nor asked for any crossexamination on the market survey report and/or led any cogent evidence on the value of the returned goods. Such a grievance of nonsupply of market survey r....
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....nion of the collector, less than the amount of duty originally paid upon them at the time of their clearance from the factory, Explanation in this clause, "value" means the market value of the excisable goods and not the exduty value thereof. " 4.1 Therefore, for the purpose of considering the value for refund under Section 173L what is required to be considered is the value of the returned goods. As per explanation to clause (v) of Section 173L, "value" means the market value of the excisable goods and not the exduty value thereof. Therefore, the submission on behalf of the assessee that the returned goods may be treated as a raw material and therefore the "value" of the raw material can be considered for the purpose of "value" while ....