2003 (6) TMI 346 - AT - Central Excise

Summary

Issues:
1. Appeal against the order of the Commissioner (Appeals) dismissing the appeal for extending provisional assessment facility.
2. Refusal of provisional assessment by Deputy Commissioner and Commissioner (Appeals).
3. Dispute regarding determination of value under Section 4 of the Central Excise Act, 1944.
4. Provisional assessment request for scrap materials.
5. Applicability of previous judgments on waste and scrap materials.
6. Final decision and allowance of the appeal.

Analysis:

1. The appeal was filed against the order of the Commissioner (Appeals) who dismissed the request for extending the facility of provisional assessment to the appellant by the Deputy Commissioner. The appellant sought permission for provisional assessment due to objections raised by the department regarding the actual selling price of goods to a specific buyer, McDonalds.

2. The Deputy Commissioner refused the provisional assessment request based on the availability of normal prices known to the assessee. The Commissioner (Appeals) upheld this decision, emphasizing that since the normal price was known, provisional assessment was deemed unnecessary for the goods sold to McDonalds.

3. The case involved a dispute over the determination of value under Section 4 of the Act, focusing on the transaction value for goods sold to McDonalds. The value for assessment was to be the price actually paid or payable by McDonalds to the appellant for each removal from the factory, excluding elements like taxes.

4. The Deputy Commissioner also rejected the request for provisional assessment of scrap materials, citing that the value of excisable goods was known and there was no dispute regarding the rate of duty applicable to the scrap items.

5. Previous judgments, such as the one in Dillon Kool Beverages Pvt. Ltd. v. CCE, were referenced to support the appellant's position on waste and scrap materials not being liable to duty. The appellant's case concerning payment of duty on specific scrap items was clarified by the appellant's counsel.

6. The Tribunal allowed the appeal, setting aside the impugned order of the Commissioner (Appeals) and Deputy Commissioner. The decision was based on the acceptance of the transaction value concept for determining the value of goods sold to McDonalds and the application of relevant judgments on waste and scrap materials.

This detailed analysis covers the key issues addressed in the legal judgment, providing a comprehensive understanding of the case and its implications.