2009 (6) TMI 974 - HC - Central Excise

Summary

The High Court of Madras, in the 2009 case of V. Ramasubramanian and D. Hariparanthaman, JJ., reviewed an appeal against a CESTAT order involving a manufacturer of patent and proprietary medicines. The respondent had not registered with the Central Excise Department during the financial years 1994-1995 and 1995-1996, claiming exemption due to their turnover being below the Small Scale Industries limit of `30 lakhs. Following an investigation, the Joint Commissioner imposed a duty of `71,587 after considering free samples and expired returned goods. The Commissioner of Central Excise later determined that a 40% discount on free goods and samples was applicable, concluding that the total turnover fell within the exemption limit. The CESTAT dismissed the Department's further appeal, leading to the present appeal. The High Court upheld the previous decisions, noting that both the Appellate Authority and the Tribunal had established the respondent's entitlement to discounts on free samples and other items, leaving no grounds for interference under Section 35G of the Central Excise Act. Consequently, the appeal was dismissed.