9911796707
TMI Blog1990 (8) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... llows : On 29-11-1984, the Central Excise Officers of Patiala Division visited the premises of the appellants and observed that during the years 1982, 1983 and 1984, the appellants had purchased Sodium Silicate from other manufacturers for use of manufacture of soap in their factory premises in addition to the Sodium Silicate manufactured and consumed captively by them. The price of Sodium Silicate purchased was higher than the assessable value of Rs. 950/- per mt declared for approval in Price List No. 242/81 effective from 1st September, 1981 on the basis of which the appellants had been paying duty during the aforesaid 3 years on the Sodium Silicate used captively. The officers observed that the appellants had not filed any price list t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de his Order No. V(14BB) 30/8/86/2717 dated 13-3-1986 confirmed a demand of Rs. 2,77,437.41. In appeal before the Collector of Central Excise (Appeals) against the aforesaid order dated 13-3-1986, the said Appellate Authority set aside the order observing that since the period for demand of duty exceeds 6 months, the case was required to be adjudicated by the Collector in terms of amended Section 11A by Central Excises and Salt Act (amended act), 1985. Hence, the impugned order passed by the Collector of Central Excise, Chandigarh which is now in appeal before us. 4. 3 issues are involved here. These are as follows : (i) Whether the price of Sodium Silicate charged by other manufacturers from the appellants is the price of comparable good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p. It has also been emphasized that the appellants did not have any facility for refining of silicate and they always make diluted lye and use Sodium Silicate with less soda content. It has also been urged that there are a number of varieties of Sodium Silicate, such as Ortho, Alkaline, Neutral, Meta, Silicate etc. depending upon the alkalinity, pH and Soda Ash & Sand Ratio, used in their manufacture. No analytical data has been furnished by the department to prove the comparability of Sodium Silicate purchased by the appellants from the small manufacturers outside and the Sodium Silicate manufactured by themselves. It has been urged that the burden to prove the comparability of Sodium Silicate is on the department since the basic case of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um Silicate manufactured by themselves. 5.2. Learned SDR on the other hand reiterated the findings of the Adjudicating Authority, namely, that the use of the silicate lye manufactured by the appellants was the same as that of the one purchased by them from outside. Therefore, comparability of the Sodium Silicate purchased by the appellants with the one manufactured by them stands established. 5.3. We have carefully considered the pleas advanced on this issue from both sides. We are of the view that since the definition of comparable goods has not been given either in the Act or in the Valuation Rules and simply because the two goods are known by the same name or they are of the same genre, it does not mean that they are closely comparable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sodium silicate was underdeclared is mainly based on the fact that price of sodium silicate in the market was higher. The appellants have explained that there were varieties of sodium silicate and price of one would vary from the others. Their price was supported by a certificate from the Chartered Accountants. What is most important, according to them is that if the department so desired, they could have found out the alleged discrepancy in the price of their own sodium silicate and similar goods available in the market. The relevant facts on this point should have been well known to the department, as neither the price of their own sodium silicate nor the price of similar goods in the market could have been suppressed. It must therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchasing the same from outside manufacturers. 6.4. We have carefully considered these pleas advanced from both sides on the issue of time-bar. We have already stated that there is no definition of comparable goods either in the Act or in the Central Excise Rules or in the Valuation Rules. In the absence of any such definition, it cannot be expected of any assessee to know about the comparability of goods vis-a-vis their own goods. In fact, Rule 6(b)(i) casts a duty on the proper officer to approve the assessable value and it is for him to find out whether there are any goods comparable to the goods of the assessee and in arriving at the assessable value, he has to make proper adjustments which appear to him reasonable taking into conside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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