2001 (5) TMI 381 - AT - Central Excise

Summary

Issues:
- Confirmation of demands on manufacturer and clandestine removal of computers
- Incorrect duty computation and unjust rejection of deductions
- Rejection of documentary evidence by the Commissioner
- Dispute over the number of computers cleared
- Claim for various deductions like transport charges, warranty charges, and installation charges
- Assessment of assessable value as cum duty price
- Contention regarding the Apex Court judgment in the case of Bata India
- Re-adjudication of the matter based on documentary evidence

Confirmation of Demands and Clandestine Removal of Computers:
The appeal arose from the confirmation of demands on the manufacturer for clandestine removal of computers without paying Central Excise Duty. The Appellants contested the number of computers cleared, claiming to have manufactured only 35 instead of the 50 computed by the department. They argued that 15 computers were for annual maintenance with evidence to support their claim. The rejection of evidence by the Commissioner was challenged, stating it violated the principles of natural justice. The main issue was the incorrect duty computation and unjust rejection of deductions.

Rejection of Documentary Evidence:
The Commissioner based the computation on statements recorded during the investigation and rejected the claim of 15 computers for annual maintenance as an afterthought. The Tribunal found the rejection of documentary evidence unjustified and ordered a re-adjudication based on the evidence produced by the Appellants.

Claim for Various Deductions:
The Appellants claimed deductions for items like printers, monitors, software, peripherals, transport charges, warranty charges, and installation charges. They cited judgments like ORG Systems and Wipro Information and Technology to support their claim. The Tribunal noted that various deductions were permissible as per previous decisions and ordered reconsideration of these deductions by the Original Authority.

Assessment of Assessable Value and Apex Court Judgment:
The issue of assessing the assessable value as cum duty price was raised, citing the Larger Bench decision in the case of Srichakra Tyres. The Revenue argued against allowing deductions on cum duty price based on the Apex Court judgment in the case of Bata India. However, the Tribunal clarified that the Apex Court judgment was specific to a notification and did not apply to cum duty price determination under Section 4 of the Central Excise Act.

Remand and Re-adjudication:
Considering the judgments and decisions cited, the Tribunal set aside the impugned order and remanded the matter back to the Original Authority for de novo consideration. The Original Authority was instructed to re-examine all evidence presented by the Appellants and make a fresh determination in light of the relevant judgments and principles of natural justice. The appeal was allowed by way of remand for further proceedings.