9911796707
TMI Blog1997 (4) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... or a similar treatment in respect of the penalty of Rs. 1.00 crore imposed on the applicant company and of Rs. 1.00 lakh imposed on the other applicant, Shri P.K. Goenka, Managing Director of the applicant company. 2. Learned Advocate submits that a demand of over Rs. 18.00 crore was made against the applicant company on an allegation that the factory gate price was far lower than the depot sale-prices by about 200%. This demands he submits, has been dropped by the adjudicating authority at page 32 of the impugned Order in the following words :- In fine, I find that the stand of the Deptt. for raising a differential amount of Rs. 18,47,91,347/- is unsustainable for the following reasons:- The particular reason to which our attentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onents of the aforesaid total amount of duty for Rs. 8,13,40,248.00 is concerned. The components are to the tune of Rs. 7,05,95,368.00 on account of addition of expenses of advertisements and Rs. 48,48,500.00 on account of notional interest-free deposit made by M/s. Landle. 4. As regards the remaining amount of Rs. 58,96,580.00 he submits that this demand has been made by the Revenue on the ground that from seven out of twenty-two depots, Kitply of X-grade quality had been sold at a higher price applicable to the other grades. He submits that this case is arguable and would require for the evidence to be gone into, which he would submit at the time of final hearing of the appeals. He further points out that the applicants have already dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20% to other dealers on the list price. This higher discount has been given for the consideration that the said purchasers, M/s. Landle are undertaking the entire advertisement in Kitply on behalf of the applicant company and they have also made a predeposit of the interest-free amount of Rs. 2.00 crore. The total amount spent on advertisements and the notional interest accrual, comes to about Rs. 24.60 crore as mentioned by the applicant company in their Stay Petition No. 105/97 at para 4(c). He, therefore, submits that an additional consideration to the extent of Rs. 24.60 crore has flown to the applicants and therefore, in terms of the Central Excise (Valuation) Rules, this amount has been correctly added to the ex-factory sale price of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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