9911796707
TMI Blog1985 (11) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... lector of Central Excise, Davangere, proposing to levy duty on the clearances made during the period 1-11-1969 to 14-5-1976. The show-cause notice was issued on the strength of the material collected by the department that the declaration filed by the petitioner earlier to avail of the exemption under the said notification, was false. 2. Under Notification No. 31/66 exemption is granted to trailers falling under Item 34 of First Schedule of Central Excises and Salt Act, 1944, from the whole of the duty provided such trailers are manufactured in a factory which does not employ more than five workers. Accordingly, the petitioner had been granted exemption relying on the declaration made by it before the department. 3. In reply to the sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as. The appellate authority, on a perusal of the records and the material relied upon by the Asst. Collector, held that the order of the original authority was justified on the facts and circumstances of the case. He held that the decision of the Supreme Court in A.K. Roy v. Voltas Limited - 1977 E.L.T. (J 177) relied upon by the appellant were not applicable to his case. 6. Being aggrieved with the order of the appellate authority the petitioner has filed this petition challenging the appellate order. It is argued by Shri Ranganath, learned Counsel on behalf of the petitioner that the demand made by the Asst. Collector as confirmed by the appellate authority, is liable to be set aside on more than one ground. His first contention is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion as to the determination of the value of an article for the purpose of Excise duty, the Supreme Court laid down the general principle in the following terms : "The only relevant price for assessment of value of the goods for the purpose of excise in such a case would be the wholesale cash price which the manufacturer receives from sale to the first wholesale dealer, that is, when the goods first enter the stream of trade. There can, therefore, be no doubt that where a manufacturer sells the goods manufactured by him in wholesale to a wholesale dealer at arms length and in the usual course of business, the wholesale cash price charged by him to the wholesale dealer less trade discount would represent the value of the goods for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). At page 2574 it is observed as under : " . . . . There is no express prohibition anywhere against an assessment at any other time in the circumstances of a case like the one before us where no "assessment" as it is understood in law, took place at all. On the other hand, Rule 10A indicates that there are residuary powers of making a demand in special circumstances not foreseen by the framers of the Act or the Rules. If the assessee disputes the correctness of the demand an assessment becomes necessary to protect the interests of the assessee. A case like the one before us falls more properly within the residuary class of unforeseen cases. We think that, from the provisions of Section 4 of the Act read with Rule 10A, an implied power to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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