2009 (4) TMI 611 - AT - Central Excise

Summary

Issues involved: Valuation of goods u/s Section 4 and Section 4A for excise duty calculation.

Summary:
The case involved the valuation of goods for the purpose of excise duty calculation under Section 4 and Section 4A. The appellant, a manufacturer of various products, claimed that they had paid excise duty including the freight element up to the dealer's premises for goods covered under Section 4. The ownership and risk of loss during transit were also claimed to rest with the appellant. On the other hand, the duty was paid at the time of removal from the factory for clearances covered by Section 4A, regardless of whether the goods were sold directly from the factory gate or through depots to dealers. The Tribunal considered the submissions from both sides and agreed with the appellant regarding the treatment of transportation up to branches as the place of removal under Section 4. However, they disagreed with the appellant's stance on transportation directly from the factory to the dealer. The issue of limitation on the demand was left to be decided at the final hearing, with no financial hardship being pleaded. The Tribunal directed the appellant to deposit a sum of Rs. 1 crore within eight weeks, with the balance amount of duty and penalty waived subject to this deposit, and stay recovery of the same until the appeal's disposal.