1998 (6) TMI 196 - Commissioner - Central Excise

Summary

Issues:
1. Appeal against Order-in-Original No. 240/C.Ex./Val/A.C. dated 17-12-1996 & 122/C.Ex./Demand/ AC/97
2. Waiver of pre-deposit under Section 35F of Central Excise Act, 1944
3. Determination of assessable value for depot sales and sales from factory gate
4. Compliance with legal provisions and case laws regarding assessable value

Analysis:

1. The appeals were filed against Order-in-Original No. 240/C.Ex./Val/A.C. dated 17-12-1996 & 122/C.Ex./Demand/ AC/97. The appellant sought a waiver of pre-deposit under Section 35F of the Central Excise Act, 1944. The advocate representing the appellant argued that duty should not be paid on sales from the depot if ex-factory sale prices were ascertainable, citing relevant case laws to support the contention.

2. The main issue revolved around the determination of the assessable value for depot sales and sales from the factory gate. The appellant argued that the ex-factory price, which was ascertainable, should be applicable for goods sold through depots as well. The adjudicating authority had held that the assessable value for depot transfers should be the depot sale price minus actual freight & insurance. The appellant relied on various case laws to support their position.

3. The Tribunal and the Supreme Court had previously settled the issue of assessable value for goods sold at the factory gate and through depots. The legal position established through these decisions indicated that the assessable value should be based on the price at which goods are sold in wholesale trade at the factory gate if the ex-factory price was ascertainable. The Supreme Court dismissed departmental appeals in similar cases, upholding the principle that the ex-factory price should be the basis for determining the value.

4. Considering the legal precedents and the arguments presented, the Commissioner (Appeals) found in favor of the appellant. The impugned orders were set aside as they did not align with the established legal position. The appeals were allowed, and the stay applications were disposed of accordingly. The judgment highlighted the importance of adhering to legal provisions and case laws in determining the assessable value for goods sold through depots and at the factory gate.