2005 (5) TMI 478 - AT - Central Excise

Summary

Issues:
1. Duty demand based on approved price list.
2. Challenge to the approved price list.
3. Jurisdiction of the Commissioner (Appeals).

Analysis:
1. The case involved a dispute regarding duty demand on a two-wheeled motor vehicle manufacturer based on an approved price list effective from 1-10-88. The respondent was alleged to have not paid duty as per the approved price list, leading to a show cause notice. The Commissioner (Appeals) initially allowed the appeal, stating that the demand had been examined as per legal requirements. However, the Revenue contended that since no appeal was filed against the approved price list, the duty must be paid accordingly.

2. The Tribunal observed that the demand was made in line with the approved price list for goods cleared by the respondent. As the respondent did not challenge the approved price list, the demand was deemed justified. The Tribunal disagreed with the Commissioner (Appeals) who had suggested that the assessee could challenge the approval of the price list after a demand had been made. Consequently, the Tribunal set aside the earlier decision, stating that in the absence of a challenge to the approved price list, the demand was valid. The appeal was allowed, and the cross-objections by the respondents were also disposed of.

3. The judgment highlighted the importance of not challenging an approved price list after a demand has been issued. It emphasized that duty demands must be paid in accordance with the approved price list unless successfully challenged within the appropriate legal framework. This case serves as a precedent for ensuring compliance with approved pricing regulations in the context of duty demands on manufactured goods.