1979 (9) TMI 85 - CGOVT - Central Excise

Summary

Issues:
1. Assessment of filling charges in the assessable value of Sulphuric Acid for Central Excise duty.
2. Validity of the revision proceedings initiated by the Central Government beyond the 180-day period.
3. Interpretation of Section 36 of the Central Excises and Salt Act, 1944 regarding the power of review by the Central Government.
4. Applicability of the Supreme Court's decision in the Voltas case on excise duty assessment.

Analysis:
1. The case involved a dispute over the inclusion of filling charges of Rs. 5/- per M.T. in the assessable value of Sulphuric Acid for Central Excise duty assessment. The Assistant Collector initially included these charges, but the Appellate Collector ruled that they should not be included as they were post-manufacturing charges. The Central Government, upon review, found that these charges were incurred before goods were removed from the factory gate and were part of manufacturing expenses. Therefore, the Government issued a show cause notice to the party to justify why the Appellate Collector's order should not be set aside.

2. The party raised three preliminary objections to the revision proceedings initiated by the Central Government. They argued that the show cause notice was issued beyond the 180-day period for filing a revision application, Section 36 did not provide for a review remedy, and the Government's tentative view in the notice could lead to bias. However, the Government clarified that the time limit for suo motu revision proceedings by the Central Government was one year, not 180 days, and the power of review was expressly conferred under Section 36(2).

3. Regarding the interpretation of Section 36 and the power of review, the Central Government held that the show cause notice was issued within the prescribed time limit, and it provided an opportunity for the party to present their case, ensuring compliance with natural justice principles. The Government's issuance of the notice did not imply bias, and they were competent to pass an order-in-review.

4. On the merits of the case, the Central Government observed that the filling charges should be included in the assessable value as they were part of the normal price at the time and place of removal, as per Section 4 of the Act. The Supreme Court's decision in the Voltas case, which clarified the wholesale cash price at the factory gate, was deemed irrelevant in this context. The Government concluded that all expenses up to the point of sale at the factory gate should be considered in the assessable value for charging excise duty.

5. Consequently, the Central Government set aside the Appellate Collector's order and reinstated the Assistant Collector's decision, ruling that the filling charges of Rs. 5/- per M.T. should indeed form part of the assessable value of Sulphuric Acid for Central Excise duty assessment.