1990 (11) TMI 277

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..... J) ]. The appellants manufacture Iron Wire nails. As there is no market or demand for the said nails at Nandigama they were disposing of the same through their sales depot at Vijayawada. The goods were transported under gate-passes to their sales depots at Vijayawada and selling them in retail. The appellants arrived at the value of the goods during the year 1979-80 at Rs. 14,96,769/- while .....

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..... ue excluding the sales tax paid on part of the goods during the relevant financial year. The Asstt. Collector penalised the appellants on the ground that they have violated Rule 173F. They submitted that there is no violation of Rule 173F as they have correctly calculated the assessable value for the purpose of exemption limit. The appellants paid Rs. 11,878.75 as sales tax and they had to pay ano .....

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..... rtment has not filed any appeal against the said order. Therefore, the duty is not involved in this case. The only question for consideration is whether the penalty levied by the lower authorities is justified. The department s case is that the value for the purpose of calculating the exemption limit should be the value of the clearances from the sales depot whereas the appellants contends that th .....

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