2010 (2) TMI 1045 - AT - Central Excise

Summary

Issues:
1. Review of adjudication order by Commissioner leading to revenue's appeal for reversal.
2. Permissibility of deductions in determining assessable value.
3. Discrepancies in Revenue's stance across different years.
4. Applicability of provisional assessment concept.
5. Requirement of pre-deposit pending appeal and recovery of demand.

Issue 1 - Review of Adjudication Order:
The case involved a review of an adjudication order by the Commissioner, which led to the revenue appealing for the reversal of the order that granted relief to the appellant. The appellant believed in a provisional assessment scheme, while the revenue took a contrary view, leading to the review order seeking an appeal remedy against the adjudication order.

Issue 2 - Permissibility of Deductions:
In the appeal before the learned Commissioner (Appeals), the revenue succeeded, resulting in a duty demand of Rs. 18,87,095 against the appellant. The key question revolved around the permissibility of certain deductions to determine the assessable value, which was decided against the assessee. Notably, despite the decision relating to the year 2005-06, subsequent years saw a different approach by the Commissioner (Appeals) under the conception of provisional assessment.

Issue 3 - Discrepancies in Revenue's Stance:
The appellant's counsel highlighted the different stands taken by the Revenue across three different years (2005-06, 2006-07, and 2007-08), causing genuine hardship. The argument emphasized that deductions permissible in later years should not render them inadmissible in the initial year due to the absence of provisional assessment. This discrepancy in approach was a point of contention.

Issue 4 - Applicability of Provisional Assessment Concept:
The learned DR contended that the plea of provisional assessment was impermissible without a specific order, citing a Supreme Court judgment. The absence of a provisional assessment order was argued to preclude the emergence of a final assessment order. Each year's independent status for assessment was emphasized, indicating that past and future assessments could not be equated.

Issue 5 - Requirement of Pre-Deposit and Recovery:
After hearing both sides and examining the records, the Tribunal expressed surprise at the casual approach of public authorities, emphasizing the importance of settling facts to maintain public confidence. In light of this, the Tribunal waived the requirement of pre-deposit for the appeal hearing and stayed the recovery of the demand pending disposal of the appeal, aiming to prevent undue hardship to the appellant. This decision was made in line with the principles laid down by the Apex Court in a relevant case.