2005 (1) TMI 547 - AT - Central Excise

Summary

Issues:
1. Appeal against the order of Commissioner of Central Excise (Appeals) regarding acceptance of merchant sale price.
2. Validity of the declaration furnished by a merchant-manufacturer for processed fabrics and acceptance of wholesale price for assessment purposes.
3. Lack of grounds to upset the findings and rejection of the appeal.

Analysis:
1. The appellate tribunal, after considering the appeal by the Revenue against the Commissioner of Central Excise (Appeals) order, noted that the acceptance of the merchant sale price could not be upheld based on a decision by the Larger Bench in the case of Sangam Processors. The tribunal found that the Revenue's appeal on this issue was not sustainable.

2. Upon further examination, the tribunal determined that the declaration provided by the merchant-manufacturer for processed fabrics, along with the wholesale price declared, should be accepted for assessment unless there are valid reasons to doubt the genuineness of the price. The tribunal emphasized that disputing the correctness of the wholesale price requires sufficient evidence and cannot be presumed without conducting an inquiry. In this case, the Assistant Collector failed to provide any evidence to support the contention that the declared wholesale price was incorrect or undervalued. Therefore, the tribunal held that the wholesale price declared by the merchant-manufacturers was appropriate under Section 4 of the Central Excise Act, and duty could be charged based on this price without deducting any amount as trader's profit.

3. Ultimately, the tribunal found that the appeal lacked merit and rejected it. The decision was pronounced in court, concluding the matter.