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1991 (12) TMI 154 - AT - Central Excise
Issues:
1. Whether the factory gate price approved under Part I should be the assessable value for sales through depots. 2. Whether the show cause notice issued by the Collector is barred by limitation. Analysis: Issue 1: Factory Gate Price as Assessable Value The appellants contended that the factory gate price approved under Part I should be considered the assessable value for sales through depots, citing the Supreme Court judgment in Indian Oxygen v. C.C.E. The Department argued that the depot sale prices were higher, indicating the ex-factory sales were not genuine. However, the Tribunal noted that the Department did not dispute the existence of the factory gate price. Relying on the Supreme Court precedent, the Tribunal held that if the ex-factory price is ascertainable, it should be the basis for determining value even for depot sales. The Department could reject the Part I price only if it proved the price was not genuine. Issue 2: Bar on Limitation The Collector contended that the extended period of 5 years under Section 11A applied as the final approval of the price lists had not exceeded 5 years. However, the Tribunal found that the Collector's conclusion that the ex-factory price was not genuine lacked evidence. The show cause notice did not allege the ex-factory price was not genuine after permissible deductions. The Tribunal emphasized that the assessable value for depot sales should be based on the approved price lists under Part I. Consequently, the Tribunal set aside the Collector's order, ruling that when the assessable value is the factory gate price, the issue of suppression of fact and invoking a longer limitation period did not arise. In conclusion, the Tribunal held in favor of the appellants, emphasizing that the factory gate price approved under Part I should be the assessable value for sales through depots. The Tribunal also ruled that the show cause notice was not barred by limitation as the assessable value was determined to be the factory gate price.
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