TaxTMI 
TaxTMI 
2023 (9) TMI 177
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....205/210 litres barrels during the calendar year, 2005, in respect of 205/210 litres barrels and 50 litres packs of lube oils removed during the calendar year 2006 and 2007 and in respect of pack size of more than 25 litres of lube oils removed during the calendar year, 2008, a dispute arose as to what should be the value of the goods in terms of Section 4 of the Central Excise Act, 1944. Thus the assessments were provisionally made during these four calendar years. 2.1 The Adjudicating Authority has finalized the provisional assessments and raised the demand of differential duty from the respondents and the ld. Commissioner (Appeals) held that the provisional assessments are to be finalized on the basis of normal transaction value and to d....
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....spondent has imposed such conditions on the distributors, which meant that the distributors were being controlled in all respects by the respondents. In effect, the distributors were the agents of the respondents. 7. In view of this, there was no question of deduction of the discounts payable by the respondent to the distributors. Further, the goods could be assessed to duty on the value which could be determined under Section 4 (1)(a) of the Central Excise Act, 1944. Thus, it is not necessary to charge the duty on the normal transaction value as claimed by the respondents. Further, in view of the relationship of the distributors as that of agents, the deduction of discounts claimed by the respondents for various calendar years was not per....
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....e Agreements entered into by the distributors with the appellant. When that is the case, the valuation of the goods cannot be in terms of Section 4(1)(a) of the Central Excise Act, 1944 as the goods are not sold for delivery at the time and place of removal, the time of removal being the time at which goods are cleared from the factory. Putting it differently, the sale of such goods from the C & F agents' premises is at a time which is subsequent to the 'time of removal', that is, subsequent to the time at which such goods had been removed from the factory. Therefore, valuation of such goods would be governed by Section 4(1)(b) of the said Act and the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. The lowe....
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....nt. Even after sales are effected by the distributors, transportation cost and insurance are borne by the appellant. In other words, distributors are appointed persons and act on behalf of the appellant. 12. The appellant sell their products to the ultimate consumer at the listed price which is uniform throughout India. The goods are first sold by the appellant to the distributors, who in turn sell these to the dealers/consumers. The sale between the appellant and the distributors are governed by the Agreement. The terms of the Agreement are very much in line with those standard agreements which are entered into between a company and its distributors. In order to ensure that the distributors comply with the policy and various requirement....
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....as- "2.6. Finalisation of provisional assessment means finalization of an issue/ground and thereafter finalization of each ER-1. The amount will communicated to the assessee at the earliest. The amount of each differential duty shall be paid along with interest at the rate specified by the Central Government by Notification issued under Section 11AA or 11AB of the Act from the first day of the month succeeding the month for which such amount is determined, till the date of payment thereof. 2.7. If the assesee is in a position to ascertain the duty himself, he may pay the duty on his own at the earliest and in that case he will not have to incur interest on account of time taken by the department to finalise assessment and communicate ....
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....he other. 11. Further, it is admitted fact that the goods are not sold at the factory gate. The sale takes place subsequently from the premises of the C & F Agents to the distributors in terms of the agreements entered into by the distributors with the respondent. Therefore, the valuation of the goods cannot be done in terms of 4 (1)(a) of the Central Excise Act, 1944 as the goods are not sold for delivery at the time and place of removal, the time of removal being the time at which the goods were cleared from the factory. 12. In this case, the sale of the goods from C & F Agents, premises is at a time , which is subsequent to the time of removal i.e. subsequent to the time at which such goods have been removed from the factory. Therefore....