2008 (12) TMI 524 - AT - Central Excise

Demand - Limitation, longer period - Valuation - free supplied items along with regular box of medicines - Section 4A

Summary

The Appellate Tribunal CESTAT, Ahmedabad, in the case of 2008 (12) TMI 524 - CESTAT, Ahmedabad, was presided over by Ms. Archana Wadhwa and Shri B.S.V. Murthy. The appellant was represented by Shri C.K. Karia, while Shri R.S. Sarova was the JDR for the respondent. The tribunal found that the appellants, engaged in medicine manufacturing, had a dispute regarding free supplied items in conjunction with regular medicine boxes. The appellants argued that these items constituted a quantity discount, citing a previous Tribunal decision in their favor. However, the tribunal noted that this decision had been overruled by a Larger Bench judgment in another case, leading to a ruling against the appellant. The tribunal extended the benefit of penalty to the appellant, based on the law declared by the Tribunal, which created a reasonable belief that the free supplied items should be treated as quantity discount. As a result, the tribunal concluded that the longer period of limitation would not apply in this case, setting aside the impugned order and remanding the matter to the Original Adjudicating Authority for confirmation of the duty demand within the appropriate time frame. The penalty was set aside, and the appeal was remanded for re-quantification. The stay petition was also disposed of as part of the judgment.