2019 (7) TMI 461 - SCH - Central Excise

SSI Exemption - clubbing of clearances - determination of value of clearance to related parties - HELD THAT - From the impugned decision of the Tribunal and particularly from the submissions which have been recorded on the aspect of valuation, we do not find that this point was specifically recorded as having been raised. If at all such a submission was addressed before the Tribunal during oral arguments but has not been dealt with, the appellants must make that grievance before the Tribunal. The Tribunal would be at liberty to consider any such application as may be made on behalf of the appellants. In order to enable the appellants to move the Tribunal, no coercive steps shall be taken to realise the balance of the demand for a period of four weeks from today, since it has been stated before this Court that 50 per cent of the demand has already been deposited. Matter restored before tribunal.

Summary

Issues:
1. Clubbing of clearances and duty-free clearance under Notification 8/2003.
2. Valuation of goods for duty determination.

Clubbing of Clearances and Duty-Free Clearance under Notification 8/2003:
The Supreme Court, in a judgment involving multiple civil appeals, upheld the Tribunal's decision regarding the clubbing of clearances of all manufacturing units and allowing the benefit of duty-free clearance under Notification 8/2003 to a specific party only. The Court found the Tribunal's reasoning adequate and declined to entertain the appeals challenging this aspect. The judgment emphasized the importance of factual foundation laid by the Tribunal in reaching this conclusion, indicating no reason for exception.

Valuation of Goods for Duty Determination:
Regarding the issue of valuation raised by the appellants, the Court noted that the Senior Counsel had argued that the duty should not be determined based on the price at which three trading units sold goods to independent buyers, citing a previous court decision. However, the Court observed that this specific point was not recorded in the Tribunal's decision or submissions. The appellants were directed to address this grievance before the Tribunal, and the Court expressed no opinion on the merits of the argument. The Court allowed the appellants to move appropriate proceedings before the Tribunal, and no coercive steps were to be taken for four weeks to enable the appellants to address the issue, considering partial deposit of the demand amount.

In conclusion, the Supreme Court disposed of the appeals based on the above terms, maintaining the Tribunal's decision on clubbing clearances and duty-free clearance while directing further consideration on the valuation issue by the Tribunal.