2009 (10) TMI 901 - AT - Central Excise

Summary

Issues involved: Determination of differential duty u/s Central Excise Act, 1944 on passenger cars cleared for testing and demonstration purposes.

Summary:
The case involved the appellant, engaged in the manufacture of "passenger cars," who cleared cars for test, display, and demonstration purposes during Jan. '99 to Oct. '99. Provisional assessment was done for 180 cars due to the inability to determine the exact value. The original authority confirmed duty payable on the cars, resulting in a differential duty amount. The Commissioner (Appeals) upheld the order, leading to the appeal against the demand of differential duty.

The appellant argued that duty demand on two cars earmarked as waste and scraps for scrapping was unjustified. They contended that assessment should have been based on the transaction value u/s Section 4 of the Central Excise Act, 1944, as they had clearance permission for test purposes.

The Revenue representative reiterated the Commissioner (Appeals) findings, emphasizing that the value declared at clearance was relevant, and the distinction between commercial and testing cars was not established by the appellant. The appellant's failure to provide cost construction for determining car value was also highlighted.

Upon review and considering arguments, it was found that the appellant's main contention regarding the difference in value between testing and commercial cars was not substantiated. The lack of cost of production details at clearance time was noted. The duty was deemed justifiable on the value of the cars at clearance, including the two cars earmarked for scrapping.

Ultimately, the Tribunal upheld the Commissioner (Appeals) decision, dismissing the appellant's appeal against the demand for differential duty. The operative portion of the order was pronounced on 28-10-2009.