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TMI Blog2000 (5) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... he Collector that M/s. Voltas Ltd. evaded duty on the components manufactured by the company of air-conditioning system cleared and installed by it in the premises of its customers in pursuance of works contracts. He had confirmed the demand for duty from Voltas and also imposed penalty on them. Voltas had availed the provisions of Kar Vivad Samadhan Scheme 1988 and an order had been passed by the competent authority acknowledging full and final settlement of the duty demanded from it. Therefore, except to the extent necessary for the determination, the liability to penalty on the appellants before us, it will not be necessary for us to deal with the issues leading to the demand for duty or imposition of penalty on Voltas. 3.The first con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y on the ground that he was an authorized signatory of the company (in his capacity as commercial manager) and therefore filed various price list and other such documents. The mere fact of signing and filing price list should not be a factor to liability. His stand through out was that he was not a party to the process whereby the goods were valued. He had in fact said so in his statement, explanation that valuation was done by the factory at Thane. This has not been considered. 6.However it is necessary at this point to keep in mind that the Commissioner has found the goods to be undervalued. The company was installing in the premises of its customers air-conditioning systems as part of work contract, which involved element of supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to evade duty. Pai, in his capacity as commercial manager and authorised signatory he really knew that the value of the goods shown in the price list that he signed was deliberately kept low, so as to evade duty. Penalty has therefore been rightly imposed upon him. 8.An analysis of the finding of the Collector on liability to penalty on Tobaccowala does not impel us to believe that he has established that he knew or had reason to believe that the goods were liable to duty. In the light of the fact the duty liability has been settled under Kar Vivad Samadhan Scheme and we do not here consider arguments with regard to the demand for duty. We have kept in mind an assumption that there was intent to evade duty. We however record for the sak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting such development to Tobaccowala. It is not possible for us to conclude on reading of Saxena's statement that he said so. He has said that he has attended the meeting of the Board (directors) as an invitee and financial statement submitted by accounts department had discussed in such meeting. The format of such statement covered the overall figures. Individual pricing was not mentioned. In reply to a pointed out question as to whether it could be said that such decisions were taken at his level and ended at responsibility of his shoulders "as Chairman of CEC" (the Chief Executive Committee). 9.Whatever this statement may say so about Saxena, it does not implicate Tobaccowala. Tobaccowala became the chairman of the company in 1986 afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spute that as the authorised signatory of the company, in his capacity as commercial manager was filing price list showing value of goods, which the Collector found to be false. Pai had taken the stand in the course of the investigation that he was not the person who decided the valuation of goods. In his statement of 8-7-1988 Pai says that the product cost list is checked and verified by the Chartered Accountant and given to him by the Thane factory works accounts. He says more specifically in his statement dated 15-7-1988 "Product cost based on the guidelines of the Institute of Cost and works Accountants of India duly verified is received from Thane is certified by the Central Excise department." He again says the price list is dated 25- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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