2004 (10) TMI 91

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....') in Appeal Nos. E/1574 & 3180/93-A & E/1668/94-A. The factual background in a nutshell is as follows : Show cause notice was issued on 29-4-1993 to the appellant in respect of the period 1-10-1992 to 11-3-1993 alleging contravention of the various provisions of Central Excise Rules, 1944 (in short the 'Rules') read with Section 4(1) of the Central Excises and Salt Act, 1944 (in short the 'Act'). A reference was made to Rule 6(b) of the Central Excise Valuation Rules, 1975 (in short the 'Valuation Rules') and it was indicated that there was a short levy of duty amounting to Rs. 38,08,127.40/-. A reply to the said notice was furnished on 29-5-1993 by the noticee (hereinafter referred to as the 'Assessee&#3....

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.... consumed is to be based on the market price of the goods directly sold. Therefore, the appeals filed by the assessee were dismissed, but that part of the order passed by the Collector, which related to penalty, was set aside. 5. Mr. V. Lashmi Kumaran, learned counsel appearing for appellant submitted that the Tribunal was wrong in applying the decision in the Ashok Leyland's case (supra) as the factual position was different. Department based its case on Rule 6 of the Valuation Rules which has application only when prices are unascertainable. As the judgment in that case can be applicable only in a situation where the goods sold in the spare parts market are identical and complete in all respects to the goods captively consumed, adm....

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....ale price to the dealer. The proviso, which has been relied upon by learned counsel, does not make any exception to this normal rule. All that the proviso provides is that if an assessee sells goods at different prices to different classes of buyers, then in respect of each such class of buyers, the normal price would be the price at which the goods are sold to that class. The proviso does not mean or provide that merely because the assessee sells at different prices to different classes of buyers, the price of that commodity becomes an unascertainable price. The price of that commodity will remain the normal price at which those goods are ordinarily sold by the assessee to the public, in other words, the price at which they are sold in the....

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....orton (1951 AC 737 at p. 761), Lord Mac Dermot observed : "The matter cannot, of course, be settled merely by treating the ipsissima vertra of Willes, J. as though they were part of an Act of Parliament and applying the rules of interpretation appropriate thereto. This is not to detract from the great weight to be given to the language actually used by that most distinguished judge." 9. In Home Office v. Dorset Yacht Co. [1970 (2) All ER 294] Lord Reid said, ''Lord Atkin's speech..... is not to be treated as if it was a statutory definition It will require qualification in new circumstances,'' Megarry, J. in (1971) 1 WLR 1062 observed : ''One must not, of course, construe even a reserved judgment of R....