9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2000 (10) TMI 256 - AT - Central Excise
Issues: Assessment of the value of molasses produced by the appellant in its sugar mill and captively consumed in alcohol manufacture.
Analysis: 1. The appeal centered on determining the value of molasses produced by the appellant based on Rule 6(b)(ii) of the Valuation Rules. The appellant declared a value of Rs. 850 per metric tonne for captive clearance between January and March 1995. However, the department proposed an enhancement to Rs. 1600 per tonne based on higher prices of molasses sold by other sugar mills during the same period. 2. The contention that the value of Rs. 850 per metric tonne should be accepted as it was determined by a committee headed by the Chief Minister of Maharashtra was dismissed. The committee's minutes were not provided, and it was revealed that the price of molasses was considered in determining the sugarcane price, not the molasses price itself. 3. It was argued that the Collector should accept the price of Rs. 1100 per tonne, as recorded for molasses sold by a sugar mill at Majalgaon in January 1995. The Collector noted purchases by a State Government undertaking at Rs. 1100 and Rs. 1600 per tonne, inferring that the appellant sold molasses of the same grade it valued at Rs. 1600 in the previous month. However, it was not proven that the molasses sold at Rs. 1100 was of the same grade as the one being valued. 4. The reasoning behind applying the higher price was deemed unacceptable as the department failed to demonstrate that the molasses being valued was of the same grade as the ones sold at different prices. The Collector's decision to ignore the sale of molasses at Rs. 1300 and determine Rs. 1100 as the correct price lacked justification, leading to the conclusion that the price of Rs. 1100 should be applied unless proven otherwise. 5. The Asstt. Commissioner was directed to calculate the duty payable based on the determined value and communicate it to the appellant for further action, marking a partial allowance of the appeal.
|
