2006 (1) TMI 426 - AT - Central Excise

Summary

Issues: Mistake apparent on the face of the record in the Tribunal's Final Order related to assessable value determination, consideration of discounts, limitation period for duty demand, applicability of Valuation Rules, 2000.

In the judgment delivered by the Appellate Tribunal CESTAT, Mumbai, the applicants contended that a mistake apparent from the face of the record arose in the Tribunal's Final Order concerning several appeals. The issues raised included the determination of assessable value for physicians' samples, consideration of trade discount and quantity discount, the limitation period for duty demand, and the applicability of Central Excise Valuation Rules, 2000. The applicants argued that certain aspects were not adequately addressed in the original order, necessitating a review.

In Appeal No. E/1821/99, the Tribunal found that while the assessable value of physicians' samples was to be determined on a pro rata basis of trade packs, the trade discount and quantity discount were disallowed. The Tribunal directed the authorities to reconsider the demand by allowing these discounts if not already done, thereby remanding the appeal to the Commissioner (Appeals) for further assessment.

Regarding Appeal No. E/1273/2004, the issue of limitation for the duty demand from 1998-99 to 30-11-1999 was raised but not addressed in the original order. The Tribunal remanded this issue for a fresh decision by the Commissioner (Appeals) to determine whether the demand is time-barred.

In the case of Appeal No. E/3657/2004, the Tribunal recognized that the period from July 2000 to November 2002 fell under the Central Excise Valuation Rules, 2000. It held that the demand for this period was not sustainable based on the Valuation Rules, directing the assessable value to be determined on a cost construction basis rather than a pro rata basis of the value of commercial packs. This appeal was partly allowed, setting aside the Commissioner's previous assessment.

The Tribunal allowed the Review of Order applications in the terms specified, addressing the issues raised by the applicants and providing directions for further assessment and reconsideration where necessary.