9911796707
TMI Blog2003 (2) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... under challenge. 2. The appellant is engaged in the manufacture of aluminium extruded sections classifiable under Chapter sub-heading 7604.29 of the Central Excise Tariff Act, 1985. The allegation in the show cause notice dated 30-10-2000 was that the appellant had indulged in evading duty in association with M/s. White Metals which according to the Revenue is allied company of the appellant. The allegation is that there are common shareholders and Directors in the two companies. The appellant purchases raw materials from M/s. White Metals and sells finished goods to them. It is alleged that the appellant had utilised Rs. 74,349.16 in the year 1997-98 and Rs. 2 crores in 1998-99 advanced by M/s. White Metals as interest free advance for w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voked. 3. After the appellant submitted its reply to the show cause notice another show cause notice dated 9-8-2001 was served on it proposing to recover excise duty amounting to Rs. 7,13,772/- for the period July, 2000 to March, 2001. Apart from interest under Section 11AB there was proposal to impose penalty under Rule 173Q read with Section 11AC. The appellant submitted its reply to the above show cause notice also. 4. The learned adjudicating authority rejected the contentions raised by the appellant and took the view that price was not the sole consideration in the case of the transaction between the appellant and White Metals, that the price for M/s. White Metals was seem depressed compared to the price for other buyers and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n delivery by the customers who had ordered the same, it will be of not much commercial value in the market. Therefore, in order to ensure that the customers purchase the goods which they had ordered the appellant received payment as advance security. The advance taken from M/s. White Metals was also for securing the sale of the goods ordered and not interest free loans as held by the Commissioner. The comparative chart given by the Commissioner in the order would not give a correct picture. A reference to 20 invoices for the period from 1997-98 to 2000-2001 would be totally inadequate to come to the conclusion that the prices for M/s. White Metals was always depressed. The appellant had produced a chart detailing all the sale transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be included for the purpose of determination of assessable value only if the deposit influences the fixation of sale price either by way of charging a less price from or offering a special discount to the buyer who has given the deposit. In the present case the appellant would submit that there is no proof to show that on account of advance deposits there has been reduction in the price to those buyers or to all buyers. 7. Regarding the allegation that the appellant had collected additional amount towards Die security it is submitted that the appellant used to take such Die security in cases where the goods of the buyers were customised and the Die had to be prepared specially for them. However, such security used to be refunded when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant from M/s. White Metals, it has to be proved that the price in respect of sale to M/s. White Metals was in any way depressed due to the reason of the advance. To show that there is a price difference in respect of the sale to M/s. White Metals and other buyers the adjudicating authority has referred to about 20 invoices. We are inclined to accept the contention raised by the appellant that only on the basis of those invoices it cannot be taken that the price had been depressed in favour of White Metals for the entire period of demand. On going through the detailed chart produced by the appellant it is seen that in most of the cases there is no price difference. Apart from the above, even in cases where there is a price difference ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
