9911796707
TMI Blog2006 (9) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... r, M/s. General Engineering Works, alleged to be related to the appellant. In addition to factory gate sales, it was also removing wire rods to its depots and carrying out sales therefrom. Assessments were provisional from 1994-95 onwards. 3. Under order dated 3-12-96, the Assistant Collector of Central Excise finalised the assessment in regard to certain price declarations. These were all in regard to sales from depot. It was held that appellant shall be entitled to deduction from the depot price towards freight and octroi. Claim for deduction in regard to all other items was rejected. It is being pointed out that the amount of duty payable on account of this finalisation of assessment is Rs. 55,577/-. The appellant filed no appeal again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the assessee file to its objection in relation to the proposed recovery of short-levy. Notice also invoked Rule 9(I) and Section 11A of the Central Excise Act. 5. The appellant contested the demand by pointing out that the duty remains correctly paid inasmuch as sale prices were treated as assessable value in each case. In regard to sale to related person, it was contended that no short-levy has taken place inasmuch as the sale prices to related persons were the same as the sale prices to unrelated buyers. 6. The above contentions on merits were not considered by the lower authorities in adjudication as well as in first appeal. Instead, a view has been taken that since the appellant did not contest the assessment order of the Superin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Act. It is also being pointed out that it remains clarified in a Circular No. 28/28/94-CX, dated 8-3-94 of the Central Board of Excise Customs that The assessee s invoice will now be used as a transport document as well as the basis for determining the assessable value under Section 4 of the Central Excises and Salt Act in lieu of Gate Pass and the Price List. Multiplicity of documents required for Central Excise purposes is being reduced . It is being pointed out that this Tribunal in the case of BOC India v. C.C.E., Mumbai II - 2005 (183) E.L.T. 449 held that assessment will be based on transaction values revealed in the invoice and not based on prices mentioned in the declarations. Learned counsel for the appellant has emphasized th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd filing its reply before that authority. In view of this, the lower authorities were required to go into the merits of the case. 12. Coming to the merits of the demand, all along the assessee s case was that the assessments were required to be made in terms of ex-factory commercial prices. Duty payments took place at the time of clearance on the invoice prices. Revenue has no case that prices mentioned in the invoices to unrelated dealers were not commercial prices or that they were favoured prices. Measure of assessable value prescribed in Section 4 of the Central Excise Act is the transaction price in a wholesale transaction. Therefore, the values adopted by the appellant at the time of clearance of the goods were the correct values. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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