2003 (12) TMI 570 - AT - Central Excise

Summary

Issues involved:
1. Assessment of additional charges in the assessable value of goods.
2. Valuation of goods sold to a sister concern at a lower value.
3. Time bar for raising demands by the Revenue.

Analysis:
1. The first issue pertains to the assessment of additional charges in the assessable value of goods. The appellant was collecting Rs. 2 per MT from customers for arranging transportation of sulphuric acid. The appellant argued that this charge was for training drivers and cleaners due to the hazardous nature of the product. The Tribunal found that this charge should not be included in the assessable value based on legal precedents cited by the appellant. The demand against the appellant was set aside on this issue.

2. The second issue revolves around the valuation of goods sold to a sister concern at a lower value than independent customers. The appellant acknowledged the requirement to adopt the value of goods sold to independent buyers as per the Central Excise Valuation Rules. However, they contested the demand on the grounds of time bar, stating that all invoices showing clearance at a lower value were submitted to the Revenue. The Tribunal agreed that the demand raised for the period in question was time-barred, and thus, set aside this demand.

3. The final issue concerns the time bar for raising demands by the Revenue. The Tribunal noted that the demand raised for a specific period was beyond the limitation period specified. Since there was no evidence of non-disclosure of lower value invoices by the appellant, the longer period of limitation could not be invoked. Consequently, the demand based on this issue was also set aside.

In conclusion, the Tribunal set aside both demands against the appellant, as they found no justification for including the transportation charge in the assessable value and deemed the demands time-barred. Consequently, the penalty was also set aside, and the appeal was allowed with any consequential relief.