Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1975-Rules 6(b) & 7-Wilful mis-statement and suppression of facts-Invocation of extended limitation period for recovery of duty 1944-Section I IA(/} Central Excise Act proviso & Section 4-Centra/ Excise (Valuation) Rules |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Central Excise Act, 1944-Section 11A(1}, proviso & Section 4-Centra/ Excise (Valuation) Rules, 1975-Rules 6(b) & 7-Wilful mis-statement and suppression of facts-Invocation of extended limitation period for recovery of duty-Appellant-manufacturer cleared goods (RCC pipes and collars) allegedly not for sale but for captive consumption-Claiming that prices of comparable goods were not known, he priced the RCC pipes/collars on cost basis without estimating profits-But he filed price list in Part VI(a) of price list proforma which refers to cases where assessee is aware of comparable prices-Held, such a hybrid mode of pricing, though not permissible, was adopted by Appellant to mislead the Department-Further, Appellant knew of the comparable prices since the pricing was based on pricing guidelines fixed by a Government agency-Collector was right in invoking the extended limitation period for demand of duty on ground that Appellant had willfully mis-stated and suppressed the facts-Besides, Rule 6(b) of the Valuation Rules pertaining to captive consumption was not attracted on facts-Hence Department rightly made best judgment assessment under Rule 7-Central Excise Rules, I 944- Rule 173C-Central Excise Tariff Act, 1985-Sub-heading 6807.00. Government Revenue-Court conscious of the rise in revenue deficit- Slippage of revenue-Additional Solicitor General to bring the present judgment to the notice of the Finance Ministry. Appellant manufacturer, during the period April, 1990 to June, 1992, cleared RCC pipes and collars falling under Chapter Heading 6807.00 to various Societies under the Lift Irrigation Scheme, by declaring that the RCC pipes and collars were not sold but were captively consumed in the projects undertaken by him under the works contract. Accordingly, he filed the price list. The Collector of Central Excise issued show-cause notice to appellant under section 11A(1) of the 1944 Act alleging that while making clearance, the appellant had undervalued the prices of RCC pipes & collars by mis-declaring to the Department that comparable prices were not available. Appellant replied to the show-cause notice, but the Collector held that the appellant had misled the Department by declaring that RCC pipes and collars were captively consumed and that comparative prices were known to the appellant. Aggrieved by order of the Collector, appellant-assessee preferred appeal to the Tribunal which was dismissed. Hence the appeal. On facts, the basic question which arises for determination is whether the appellant knew of the comparability of his goods with those of other manufacturers and whether the appellant had misled the Department by declaring that the RCC pipes and collars were captively consumed, particularly, when the appellant as a contractor had dr2wn the Tenders Scales on the basis of pricing guidelines of Maharashtra State Sewerage and Water Board. |
Judge | Honble Mr. Justice S.H. Kapadia |
Neutral Citation | 2005 INSC 5 |
Petitioner | M.k. Kotecha |
Respondent | Commissioner Of Central Excise, Aurangabad |
SCR | [2005] 1 S.C.R. 42 |
Judgement Date | 2005-01-04 |
Case Number | 3638 |
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