TaxTMI 
TaxTMI 
2003 (9) TMI 193
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....k and there could be difference in grade or quality of molasses. Therefore, SCN was issued by Range Superintendent vide F. No. RII/GMSSK/SCN/95/1169, dated 2-11-95 demanding the differential duty of Rs. 2,636/- calculating at the rate of Rs. 601/- PMT for the entire quantity cleared during the month. The Assistant Commissioner, Central Excise, Nanded vide his OIO No. 71/96, dated 9-1-96 has withdrawn the SCN holding that the normal practice of sale of molasses is through calling for Tenders. After checking the bidding a contract is entered, into sale to the bidder who wins the tender. Thus, in case of sales through contracts, each contract is signed for a different price depending upon the quotations. All the molasses sold against a part....
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....ld have considered the fact that the production cost of molasses itself is higher than the value of clearance and recovered the duty considering the value of molasses as Rs. 1,000/- PMT. The Commissioner (A), Pune vide OIA No. A-502/97, dated 28-11-97 has rejected the appeal finding that, in this case Department has not doubted genuineness of the price, at which molasses were sold. Merely because prices were lower than the cost of production, assessment is being sought to be made at the price of Rs. 1,000/- PMT being the cost of production + other incidential charges. This is totally incorrect as under Sec. 4, once the normal price at which the goods are sold is available, the Department cannot reject the normal price merely because it i....
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....on and margin of profit even if these are not captively consumed or to be sold in open market after inviting tenders, etc. (2) The Sugar Technologist of the Vasant Dada Sugar Institute, Pune has determined the cost of production of molasses as Rs. 852/- PMT without adding any overheads irrespective of grade of molasses. Adding the minimum overheads, the value cannot be less than Rs. 1,000/- PMT or at least they should have paid the duty considering minimum value of molasses as Rs. 1,000/- PMT. (3) The Assistant Commissioner should have considered the fact that the production cost of molasses itself is higher than the value of clearances and recovered the duty, considering the....
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....1/- PMT, though the price on cost construction method works out to Rs. 1,000/- PMT as stated above. 3. When the matter was called, the DR reiterated the grounds taken in appeal. None appeared for the respondents. After considering the submissions made and going through the record, it is found :- (a) The fact that the two clearances were effected on the basis or different contracts entered into and that the contracts are not being questioned is not disputed by Revenue. The clearances are on different invoices dated 5-8-95 and 11-8-95 of the molasses from the same tank but at prices at Rs. 601/- PMT and Rs. 575/- PMT and there are clearances on intermediate days also as it appears from the....