Commissioner of Central Excise, Mumbai v. Gurera Synthtics Pvt. Ltd.

November 26, 2021

Civil Appeal No. 287 of 2007

Excise — Excise duty — Liability to pay — Assessee, if can be absolved — Valuation of product by assessee — Show cause notice issued to assessee on ground that less value of the fabric was quoted, for the Grey fabric used by the assessee for the manufacture of its products — Admittedly, Grey fabric was supplied to the assessee by different merchant manufacturers — Price shown in the invoice was taken into consideration by assessee — Merchant manufacturers were disclosing lesser value — Said fact was not known to the assessee — Held, therefore, the Appellate Tribunal has, therefore, rightly absolved the assessee of any liability, which was meagre amount — Central Excise Act, 1944, S. 3 (Paras 3 to 5)

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(A.K. Sikri and Rohinton Fali Nariman, JJ.)

Commissioner of Central Excise, Mumbai _____ Appellant

Gurera Synthtics Pvt. Ltd. ____________________ Respondent

Civil Appeal No. 287 of 2007, decided on September 9, 2015

The Order of the court was delivered by

Order

1. For the period June, 1994 to April, 1998, show cause notice was issued to the respondent-assessee herein on 02.07.1999, invoking extended period of limitation and demanding differential duty of Rs. 11,53,136/-.

2. It was alleged therein that for the Grey fabric used by the assessee for the manufacture of its products, less value of the said fabric was quoted. The defence of the assessee was that the aforesaid Grey fabric is supplied by different merchant manufacturers to the assessee and the price shown in the invoice was taken into consideration while disclosing the value of the product.

3. It has come on record that the aforesaid merchant manufacturers were disclosing lesser value. It has also come on record that this fact was not known to the assessee. Therefore, the assessee could not be made responsible for the aforesaid.

4. The Customs, Excise and Service Tax Appellate Tribunal has, therefore, rightly absolved the assessee of any liability.

5. Even otherwise, the amount involved is only Rs. 11.53 lakhs.

6. On these facts, no question of law arises for consideration. The appeal is, accordingly, dismissed.

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