1997 (10) TMI 254 - AT - Central Excise

Summary

Issues:
- Alleged evasion of Central Excise duty by M/s. Kerala Rubber & Reclaims Ltd.
- Contravention of Central Excise Rules and provisions of the Central Excises & Salt Act, 1944.
- Interpretation of provisions regarding assessable value, distinct classes of buyers, and sale transactions.

Analysis:
1. The appeal was filed against the Collector of Central Excise's order alleging that M/s. Kerala Rubber & Reclaims Ltd. evaded Central Excise duty after the reclassification of reclaimed rubber under Tariff Act, 1985.
2. M/s. Kerala Rubber & Reclaims Ltd. submitted price lists for sales at factory gate and to industrial consumers, but investigations revealed stock transfers disguised as sales to selling agents, leading to duty evasion.
3. The department accused the assessee of contravening Central Excise Rules by not paying full excise duty on reclaimed rubber, suppressing facts in price lists, and evading duty intentionally.
4. The appellant contended that the department lacked evidence to prove overpricing to industrial consumers in Punjab & Delhi, arguing that different prices for distinct classes of buyers were permissible.
5. The Tribunal emphasized the importance of determining the price at the point of goods' removal and held that transfer invoices to selling agents did not constitute sales, citing relevant case law.
6. It was established that no actual sale occurred between the appellant and selling agents, just transfers, justifying the duty calculation based on normal prices for general sales.
7. The Tribunal rejected the appellant's reliance on a previous case involving distinct classes of buyers, noting that no sale occurred to specific buyers in this case.
8. The concealment of facts regarding the actual recipients of goods in Part-II price lists amounted to evasion, justifying the demand for duty and penalties, with the appeal ultimately dismissed.