2014 (1) TMI 270 - AT - Central Excise

PSC Sleepers supplied at rate lower than the approved rate - Waiver of Pre-deposit Held that - The approval of price list has been dispensed with w.e.f.1.4.94 and the clearance documents like, invoices/gate passes were accepted on the basis for determination of assessable value - the price at which the goods were sold after 1994, would be relevant for determination of the assessable value under Section 4 of the Act in view of the amendment to Rule 173C of erstwhile Central Excise Rules, 1944 - the applicants are able to make a prima-facie case in their favour Pre-deposits waived till the disposal Stay granted.

Summary

Issues: Application for waiver of predeposit of duty of Rs.2,68,133/-

Analysis:
1. Issue of Price List Approval: The appellant supplied PSC Sleepers to Indian Railways at a rate lower than the rate approved earlier in 1992 by the jurisdictional Assistant Commissioner. The approval of the price list has been dispensed with from 1.4.1994, and the price shown in the invoices/gate passes were considered for determining the value under Section 4 of the Central Excise Act, 1944. The Department alleged that the sleepers were cleared at lower prices during July and August 1995, contrary to the approved price list.

2. Legal Argument and Decision: The appellant argued that since the sleepers were cleared at lower prices after 1.4.1994, the allegation in the show-cause notice was dropped by the Adjudicating Authority. However, the Commissioner (Appeals) ruled against them. The Tribunal analyzed the records and found that the approval of the price list had been dispensed with from 1.4.1994, and the clearance documents were accepted for determining the assessable value. The Tribunal held that the price at which the goods were sold after 1994 would be relevant for determining the assessable value under Section 4 of the Act due to an amendment to Rule 173C of the Central Excise Rules, 1944.

3. Decision and Order: After hearing both sides, the Tribunal concluded that the applicants had made a prima facie case for a total waiver of duty. Consequently, the Tribunal waived the predeposit of duty and stayed its recovery during the pendency of the appeal. The stay petition was allowed, and the duty waiver was granted based on the legal interpretation and application of relevant provisions of the Central Excise Act, 1944.