2015 (10) TMI 446 - SCH - Central Excise

Valuation - Undervaluation of goods - Invocation of extended period of limitation - Held that - It has come on record that the merchant manufacturers were disclosing lesser value. It has also come on record that this fact was not known to the assessee. Therefore, the assessee could not be made responsible for the aforesaid - Customs, Excise and Service Tax Appellate Tribunal has, therefore, rightly absolved the assessee of any liability - no question of law arises for consideration - Decided against Revenue.

Summary

The Supreme Court dismissed the appeal in a case where a show cause notice was issued to the respondent for demanding differential duty on Grey fabric used for manufacturing products. The Court found that the respondent was not responsible for the lesser value quoted by the merchant manufacturers supplying the fabric. The Customs, Excise and Service Tax Appellate Tribunal rightly absolved the assessee of any liability. The amount involved was only Rs. 11.53 lakhs, and no question of law arose for consideration.