2005 (5) TMI 521 - AT - Central Excise

Summary

Issues:
- Appeal against the Order passed by the Commissioner (Appeals), Central Excise, Mumbai regarding the assessable value of fire extinguishers and related activities.

Detailed Analysis:
1. The Respondent, a manufacturer of fire extinguishers and refiller, was found to be recovering packing charges separately, which were not considered in the assessable value for excise duty purposes. This led to a deliberate suppression of facts regarding cost factors, contravening Central Excise Rules 173C, 173F, and 173G.

2. A Show Cause Notice was issued proposing duty demand and penalties. Upon adjudication, duty of Rs. 11,91,180/- was confirmed along with an equal amount of penalty and redemption fine of Rs. 1,20,000/-.

3. The Commissioner (Appeals) held that the adjudication was not sustainable under the law, leading to the appeal. The Commissioner emphasized that the assessable value should be based on the price at which goods are ordinarily sold by the assessee in wholesale trade, especially when the Depot is considered a place of removal.

4. The Commissioner's finding was deemed to be in line with the law, requiring the Chennai unit to revise the assessable value and demand differential duty for not considering charges from the Depot to independent buyers.

5. The Tribunal upheld the Commissioner's decision, stating that the finding was within the legal framework and did not warrant any interference. The Revenue's case was dismissed, and the appeal was rejected.

This judgment clarifies the importance of correctly determining the assessable value for excise duty purposes, emphasizing the inclusion of all relevant charges in wholesale transactions. The case highlights the consequences of deliberate suppression of facts and the need for compliance with Central Excise Rules to avoid penalties and duty demands.