2005 (7) TMI 493 - AT - Central Excise

Summary

Issues:
Assessable value of pepsi manufactured by the appellant during 1994-95.

Analysis:
The judgment by the Appellate Tribunal CESTAT, New Delhi dealt with the dispute regarding the assessable value of pepsi manufactured by the appellant during the period 1994-95. The appellant was initially paying duty based on a value of Rs. 44/- per crate of pepsi. However, under the impugned order, the assessable value was revised to Rs. 54/- on the grounds that the appellant was allegedly incorporating realizations towards advertisement under the guise of transport cost. The learned Counsel representing the appellant argued that the finding in the impugned order was unreliable. It was highlighted that another manufacturer, Moon Beverages, was selling the same product at the same price during the period, and the Excise authorities had accepted that price as the assessable value in a previous case confirmed by the Tribunal and the Apex Court. The appellant contended that if Moon Beverages' sale price was accepted, it should be the basis for valuation. Additionally, it was argued that since the neighbouring unit's price was Rs. 44/-, the appellant could not sell at a higher price. On the other hand, the learned SDR pointed out that the Commissioner had thoroughly examined the appellant's billing and collection methods, supporting the findings.

The Tribunal acknowledged the merit in the appellant's contention. It was noted that when the neighbour's unit sold at the same price as the appellant, there was no justification for assigning a significantly higher assessable value to the appellant's product. The Tribunal also emphasized the principle that recoveries towards freight, being distinct from the price of goods, should not influence the assessable value of the goods. Consequently, the Tribunal decided to waive the requirement for a pre-deposit and stayed the recovery pending the appeal's disposal. The judgment was dictated and pronounced in open court by Member (T) C.N.B. Nair.