2005 (6) TMI 109 - AT - Central Excise

Summary

Issues: Valuation of excisable goods cleared as per approved tenders; Reopening of assessments for the period of June 2000 to September 2003; Invocation of proviso to Rule 9 read with Costing Rule 8 of the Valuation Rules.

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue at hand involves the valuation of excisable goods cleared as per approved tenders, with a focus on reopening assessments for the period spanning from June 2000 to September 2003 and the invocation of the proviso to Rule 9 in conjunction with Costing Rule 8 of the Valuation Rules. The Tribunal noted that the appellants presented evidence through charts demonstrating that clearances were made at values both higher and lower than those envisaged by the Rule 9 and Rule 8 formula. However, the Commissioner failed to consider this plea, leading to a conclusion that there was no deliberate attempt to evade tax, thus making the bar of limitation available. Citing the Aquamall Water Solutions Ltd. v. CCE, Bangalore case, the Tribunal indicated that the provisions of rules may not be applicable, and values as per Section 4(1) should be accepted. Moreover, if the Rule 9 and Rule 8 formula is deemed applicable, it must be uniformly applied to all removals under question, with adjustments for excess or short payments of duty to determine any overall demand, given that all assessments for the period are being reopened by the notice.

Furthermore, the Tribunal, after waiving the pre-deposit, set aside the order and allowed the appeal for remand to redetermine the issues. It was emphasized that all issues are to be kept open for both sides, ensuring a comprehensive review of the matter. Ultimately, the appeals were allowed for remand, signifying a significant decision in the context of the valuation and assessment procedures concerning excisable goods and the application of relevant rules and provisions in the given timeframe.