2017 (9) TMI 405 - AT - Central Excise

Principles of Natural Justice - Valuation - appellant has repeatedly failed to appear before that authority and lead proper evidence - Held that - Looking to the attitude of the appellant by repeated absence to place evidence before the authority as well as explain the reasons of the deduction claimed, appeal of the assessee is liable to be dismissed - this order has been passed in the absence of appellant. But the facts and circumstances narrated by the adjudicating authority, demonstrate that this appeal is an abuse of process of law for the dilatory tactics followed by the appellant - appeal dismissed - decided against appellant.

Issues:
1. Failure of the appellant to appear before the authority despite directions to follow natural justice.
2. Examination of various deductions claimed by the appellant.
3. Appellant's behavior towards law and dilatory tactics.
4. Disallowance of claims by the authority.
5. Legal precedents and judgments cited by the Revenue.
6. Dismissal of the appellant's appeal.
7. Revenue's appeal for imposition of interest and penalty.

Analysis:

1. The judgment addresses the issue of the appellant repeatedly failing to appear before the authority despite directions to follow the course of natural justice. The adjudicating authority extended multiple opportunities for the appellant to explain its case, but the appellant did not avail a single chance. The authority highlighted the appellant's non-compliance with the provisions of the Central Excise Act, leading to the dismissal of the appellant's appeal.

2. The authority examined various deductions claimed by the appellant, including interest on receivables, duty paid stock, distribution expenses, freight, insurance, surcharge on sales tax, quantity discount, trade discount, annual trade discount, and cash discount. The authority found that these claims did not have an integral connection with the cost of manufacture and were post-manufacture expenses, leading to their disallowance.

3. The judgment also delves into the appellant's behavior towards the law and its dilatory tactics. The appellant failed to respond to the adjudicating authority, leading to prejudice to the interest of Revenue. The authority emphasized that the appellant's actions caused an abuse of the legal process, resulting in the dismissal of the appeal.

4. The authority discussed the disallowance of claims made by the appellant, emphasizing that discounts not recognized by law should not artificially reduce the assessable value of goods cleared. The appellant failed to provide evidence to support the necessity of the claimed deductions, leading to the dismissal of the appeal.

5. Legal precedents and judgments cited by the Revenue, including decisions of the apex court and previous tribunal rulings, supported the disallowance of the appellant's claims. These judgments highlighted the importance of adhering to legal principles and not allowing claims that do not have a valid basis.

6. The judgment ultimately dismissed both the appellant's and Revenue's appeals. The appellant's repeated absence and failure to provide evidence led to the dismissal of their appeal, while the Revenue's appeal for the imposition of interest and penalty was unsuccessful due to a lack of foundation in the show cause notice.

7. Despite the absence of the appellant during the pronouncement of the order, the judgment emphasized that the dismissal of the appeal was justified due to the appellant's dilatory tactics and abuse of the legal process. The decision aimed to prevent further wastage of the Tribunal's time and protect the interest of Revenue.

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