2010 (4) TMI 1043 - HC - Central Excise

Valuation - grey fabrics - value of grey fabrics was higher compared to the value declared for the fabrics processed from such grey fabrics - duty on the lower assessable value on the basis of instructions from the Merchant Manufacturers - On being asked, Mr. Desai stated that no such statement is to be found in the statement of Mr. Punjabi. Under these circumstances, the reliance placed on these statements are contrary to the reliance placed.

Summary

Issues:
1. Discrepancy in payment of central excise duty on grey fabrics.
2. Reliance on statements made by the respondent regarding the payment of duty.
3. Interpretation of statements and evidence by the Tribunal.
4. Applicability of legal precedents in the case.

Analysis:
1. The primary issue in this case revolves around the discrepancy in the payment of central excise duty on grey fabrics by the respondent. The Tribunal's order highlighted that the respondent agreed to pay the differential duty on the revised assessable value for grey fabrics, which were found to have a higher value compared to the processed fabrics. However, discrepancies arose as the respondent denied making such a statement during the proceedings.

2. The second issue concerns the reliance placed on the statements made by the respondent regarding the payment of duty. The appellant's counsel attempted to challenge the Tribunal's decision based on the statements extracted from the show cause notice and the Order-in-original. The Tribunal's findings were based on these statements, but discrepancies emerged during the verification process, leading to questions about the accuracy and authenticity of the statements.

3. The interpretation of the statements and evidence by the Tribunal forms another crucial aspect of this case. The Tribunal not only considered the statements made by the respondent but also analyzed the legal precedents set by the Apex Court and followed by the Tribunal in similar cases. The Tribunal's decision was based on the appreciation of evidence and the application of relevant legal principles, ultimately leading to the dismissal of the appeal.

4. Lastly, the issue of the applicability of legal precedents, specifically the cases of CCE, Mumbai v. Lajay Dyeing & Bleaching and Vishnu DYG & PTG Works, played a significant role in the Tribunal's decision. The Tribunal found no substantial question of law involved in the matter, indicating that the decision was based on established legal principles and precedents, leading to the dismissal of the appeal without any costs awarded.