1998 (4) TMI 241 - AT - Central Excise

Summary

Issues:
1. Appeal against Order-in-Appeal upholding duty payment on clearances of excisable goods from depots.
2. Appellant's plea for exclusion of certain expenses from assessable value.
3. Dispute over benefits under Section 4 of Central Excise Act.
4. Adequacy of documentation and explanation for higher prices at depots.

Analysis:
1. The appeal challenged the Order-in-Appeal directing duty payment on clearances of excisable goods from depots based on invoice prices. The appellant contended that opting for invoice value assessment should not negate deductions under Section 4 of the Central Excise Act. The authorities rejected this argument, leading to the appeal.

2. The appellant submitted a certificate by a Chartered Accountant detailing additional expenses for sales at depots, which was not discussed in the appellate order. They argued that the absence of necessary documents was incorrect, emphasizing the availability of deductions under Section 4. The dispute centered on whether the appellant should lose benefits due to opting for invoice value assessment.

3. The respondent highlighted that benefits under Section 4 apply when assessment is based on approved price lists, not invoice value assessment. They contended that the deduction claimed by the appellant was inadmissible, citing lack of documentation to support higher depot prices due to post-removal expenses like freight and insurance. The respondent advocated upholding the impugned order.

4. The Tribunal acknowledged both parties' submissions and rejected the notion that opting for invoice value assessment should preclude statutory deductions under Section 4. However, the appellant failed to adequately explain the reasons for higher depot prices and did not provide necessary documentation. Consequently, the matter was remanded for a fresh decision, directing the appellant to substantiate the claim of higher depot prices due to post-removal expenses. The impugned order was set aside, and the appeal was allowed by remand for further consideration.