2001 (2) TMI 853 - AT - Central Excise

Summary

Issues:
1. Alleged excise duty evasion by two individuals engaged in manufacturing excisable goods.
2. Assessment of excise duty on two independent units.
3. Interpretation of assessable value based on invoice price.
4. Applicability of duty abatement on sale price.
5. Settlement under 'Kar Vivad Scheme' and consequential relief.

Analysis:
1. The case involved a show cause notice alleging excise duty evasion by two individuals engaged in manufacturing excisable goods. The demand was issued on one of the individuals under the proviso to Section 11A(1) of the Central Excise Act for clearing Tyre moulding machinery without observing excise formalities.

2. The Collector found that the two individuals were running independent units, with one getting work done on a job work basis. The total clearance exceeded the exemption limit for one unit during a specific year, leading to the assessment of Central Excise Duty and imposition of a penalty.

3. The appeal raised the issue of the treatment of invoice price for determining the assessable value, contending that the price mentioned in the invoice should be considered as the assessable value. Reference was made to precedents to support this argument.

4. The Revenue filed an appeal challenging the Collector's order, but during the proceedings, it was noted that the amount was paid under the 'Kar Vivad Scheme' without a final settlement certificate issued due to a delay. The appellant requested consequential relief.

5. The Tribunal considered the issue of treating invoice price as cum-duty or ex-duty for determining the assessable value and duty amount payable. Referring to a previous decision, it was held that duty payable later can be abated from the sale price. Following this interpretation, the appeal by the Revenue was dismissed.

In conclusion, the Tribunal dismissed the appeal, upholding the interpretation that duty payable later can be abated from the sale price, settling the divergence of opinion on the treatment of invoice price for determining assessable value in excise duty cases.