9911796707
TMI Blog1997 (1) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Appellant, engaged in the manufacture of T.V. sets with screens of various sizes filed price lists in Part I in regard to Black White T.V. screen sizes exceeding 36 cms showing wholesale price as Rs. 1750 per set. Appellant also submitted along with price lists costing data showing the cost of components and manufacturing cost together as Rs. 1519 and profit as Rs. 231, total being Rs. 1750. Apparently, the price fixed was sought to be supported by costing data in view of Notification No. 58/78 which granted exemption beyond 5% in respect of T.V. sets with screen size exceeding 36 cms, provided the value was not above Rs. 1750 per set. Tariff rate of duty during the major part of the disputed period was 20%. The period in question is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is also clear that there was some error in the costing data furnished by the appellant along with price lists because as explained by the learned Counsel for the appellant that the appellant thought that several items of expenses need not be included and therefore costing data indicated the costing element as Rs. 1519 per set. 4. However, it has to be seen that the appellant was selling T.V. sets in the wholesale market and was not captively consuming the T.V. sets. Valuation in this case could only be under Section 4(1)(a) of the Central Excise Act, 1944 (for short, the Act) that is, the normal price at which the assessee sells such goods to a buyer in the course of wholesale trade for delivery at the time and place of removal, where t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As long as the price is genuine and the buyers are not related persons and the transactions are at arms length, there is no justification to depart from the price under Section 4(1)(a) of the Act. Therefore, the Collector was not justified in demanding duty at a higher value. 6. It is also contended that the show cause notice was barred by time. If the proviso to Section 11A of the Act cannot be invoked, the notice would be barred by time. The only mention in the show cause notice, in this behalf, was that there was misdeclaration of value by mis-stating information in the costing data in order to avail the concessional rate of duty. Concessional rate of duty, as indicated earlier, was subject to the value being not above Rs. 1750 per set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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