2007 (5) TMI 501 - AT - Central Excise

Summary

Issues involved: Valuation of petroleum products for excise duty u/s 4 of the Central Excise Act, 1944.

The Appellate Tribunal CESTAT, KOLKATA heard the appeal regarding the valuation of petroleum products for excise duty. The Appellant contended that the impugned order adding Rs. 44/- per Kilolitre to the assessable value for clearances during a specific period was incorrect. It was argued that a similar demand for another refinery had been decided in their favor previously. The Appellants had charged only Rs. 44/- as allowed by the Oil Coordination Committee, despite incurring a higher cost of Rs. 65/-. The Adjudicating Commissioner's lack of clear findings and doubts regarding the charges were highlighted. The Appellants provided evidence and argued that transport charges should be excluded from the assessable value as per Valuation Rules in force during the period.

The Tribunal considered the arguments presented by both sides. The ld. DR supported the order passed by the Lower Authority, while the Appellants argued against the addition of Rs. 44/- to the assessable value. After examining the case record, the Tribunal noted the lack of a clear finding by the Adjudicating Commissioner and the doubts raised regarding the charges. The Tribunal found that the Appellants had adequately addressed the issues, citing specific rules allowing transport charges to be excluded from the assessable value. The invoices also clearly showed the charges separately. Consequently, the Tribunal concluded that there was no valid reason to add Rs. 44/- to the assessable value and decided in favor of the Appellants, setting aside the impugned order and allowing the appeal. The Stay Application was also disposed of during the proceedings.