2015 (12) TMI 1402 - SC - Central Excise

Undervaluation of goods - Related person - Appeal against the decision of Tribunal 2006 (10) TMI 66 - CESTAT CHENNAI - When department fails to prove any one of the following condition the allegation of under valuation is not sustainable (i) mutuality of interest, (ii) price is lower to the normal price and (iii) buyer and seller are related person - Held that - Tribunal has arrived at the aforesaid findings by giving cogent reasons on the basis of evidence that was produced by the respondent(s)/assessee(s). - these are pure findings of fact arrived at by the Tribunal. In fact, in the appeal filed by the Department it is not even a ground that these findings are perverse - No question of law arises - Decided against Revenue.

Summary

Issues:
Allegations of undervaluation of medicines for lesser excise duty payment between related parties.

Analysis:
The appellant issued show cause notices to the assessee, alleging undervaluation of Patent and Proprietary Medicines (P or P medicines) supplied to another company. The parties involved were related, leading to suspicions of undervaluation and lesser excise duty payment. The Tribunal re-examined the evidence and negated the factors considered by the Commissioner. The Tribunal provided detailed findings, explaining that the respondent/assessee satisfactorily addressed each allegation. The Tribunal's 108-page order thoroughly analyzed the evidence and concluded that the allegations were baseless. The Tribunal's findings were based on the evidence presented by the respondent/assessee and were considered as pure findings of fact. The judgment highlighted that the Department did not challenge these findings as being perverse. Consequently, the Supreme Court found no legal question arising from the appeals and dismissed them.