2008 (5) TMI 634 - AT - Central Excise

Summary

Issues:
1. Disallowance of abatements towards discounts and sales tax in finalization of provisional assessments.
2. Application of old Valuation Rules instead of amended provisions of law.
3. Lower appellate authority's decision without considering written submissions.
4. Need for remand to original authority for fresh orders of finalization of provisional assessments.

Analysis:
1. The appellants, manufacturers of lubricating oils, faced disallowance of abatements towards discounts and sales tax in finalizing provisional assessments for the years 2004 and 2005. The original authority applied amended provisions of Section 4 of the Central Excise Act and Central Excise Valuation Rules 2000, resulting in impugned duty demands due to incorrect application of old Valuation Rules by the appellants.

2. The appellants, upon realizing the mistake, filed an appeal with the Commissioner (Appeals) claiming entitlement to a refund of duty based on normal transaction value under the amended provisions of law. They provided calculations and Chartered Accountant's certificates to support their claim. However, the appellate authority sustained the orders of adjudication without acknowledging the appellants' written submissions.

3. The authorized representative of the appellants argued that the lower appellate authority's decision was unsustainable as it did not consider the written submissions and actual figures provided by the appellants. The Department reiterated its stance based on Board's Circular, emphasizing the need for furnishing actual figures for deduction from the assessable value.

4. Considering the submissions, the Tribunal concluded that the matter should be remanded to the original authority for fresh orders of finalization of provisional assessments. The Tribunal set aside the lower authorities' orders and directed the original authority to consider the relevant particulars provided by the appellants, including Chartered Accountant's certificates, and grant a reasonable opportunity for a hearing.

5. As a result, both appeals were allowed by way of remand, and the stay applications were disposed of. The Tribunal highlighted the necessity of providing actual figures for deduction from the assessable value in accordance with the amended provisions of the Central Excise Act.