Rajasthan Cylinders and Vs. Cce

Rajasthan Cylinders and vs Cce

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided Nov 27, 2000

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Citation: sooperkanoon.com/19861
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Judge: G B Deva, N T C.N.B.
Decided On: Nov 27, 2000
Subject: Land Acquisition

Case Summary

AI-generated summary - not the official court judgment text.

Land Acquisition

Key legal issue: Land Acquisition

Parties & Advocates

Appellant / Petitioner

Rajasthan Cylinders and

Respondent

Cce

Legal References

Reported In: (2001)(73)ECC633

Excerpt

.....should be adopted for the purpose of computing differential duty. the ld. counsel submitted that on such re-computation, the duty demand would be around rs. 1.5 lakhs as against the confirmed demand of over rs. 2,88,000. he also submitted that, in the facts of this case, the penalty imposed was very high.4. there could be no dispute in the present case that the duty computation has been done incorrectly as the price of lpg cylinder of a higher capacity, was adopted as basis, that too when cylinders of the same capacity were also being sold during the relevant period. the duty amount is, therefore, required to be re-computed adopting the assessable value of rs. 610 and rs. 695 for the periods involved. it is, therefore, ordered that the jurisdictional central excise authorities shall re-compute the duty demand on the basis of these values. in the facts of this case, the penalty imposed is also required to be suitably reduced. accordingly, the penalty is reduced to rs. 50,000.5. we find that the appellant has already debited rs. 2,38,277 in terms of our stay order no. 249/2000-a dated 22.9.2000 in their rg-23 account. the central excise authorities shall adjust the re-calculated duty from the amount already debited in the rg-23 account and the balance shall be re-credited to the account. the appellants shall make separate payment of the penalty of rs. 50,000.

Full Judgment

1. The dispute is with regard to assessment of gas cylinders captively consumed by the appellant, for filling LPG gas. Original duty payment was based on the assessable value of Rs. 531 per cylinder. However, this price was found to be in respect of export to Nepal. Accordingly, demand has been confirmed, taking the assessable value of Rs. 710 per cylinders. On re-assessment, short levy of Rs. 2,38,277 has been confirmed. Further, penalties of Rs. 2,38,277 and Rs. 1,00,000 have also been imposed on the appellant.

2. Arguing for the appellant, Ld. Counsel submitted that duty calculation has not been done correctly. The period of duty demand was between 30th September, 1995 to 31st March, 1988 (sic) [1998]. The demands are with regard to captively consumed goods. Therefore, their assessable value should have been fixed at the price of comparable goods. The Rs. 710 which has been adopted by the Central Excise authorities was the value of 17 kgs. capacity cylinder, while the cylinder involved in the present case are of 15 kgs. capacity.

Therefore, these goods were not comparable goods. Further, the appellants were selling 15 kgs. cylinder @ Rs. 610 to M/s. Continental Petroleum Ltd. during November, 1995. They were selling the same goods at Rs. 695 during 1996-97 to M/s Mahadik Ftetroleum. The Counsel submitted that these values should be adopted for the purpose of computing differential duty. The Ld. Counsel submitted that on such re-computation, the duty demand would be around Rs. 1.5 lakhs as against the confirmed demand of over Rs. 2,88,000. He also submitted that, in the facts of this case, the penalty imposed was very high.

4. There could be no dispute in the present case that the duty computation has been done incorrectly as the price of LPG cylinder of a higher capacity, was adopted as basis, that too when cylinders of the same capacity were also being sold during the relevant period. The duty amount is, therefore, required to be re-computed adopting the assessable value of Rs. 610 and Rs. 695 for the periods involved. It is, therefore, ordered that the jurisdictional Central Excise authorities shall re-compute the duty demand on the basis of these values. In the facts of this case, the penalty imposed is also required to be suitably reduced. Accordingly, the penalty is reduced to Rs. 50,000.

5. We find that the appellant has already debited Rs. 2,38,277 in terms of our Stay Order No. 249/2000-A dated 22.9.2000 in their RG-23 account. The Central Excise authorities shall adjust the re-calculated duty from the amount already debited in the RG-23 account and the balance shall be re-credited to the account. The appellants shall make separate payment of the penalty of Rs. 50,000.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Delh... Same Parties Rajasthan Cylinders and vs Cce Same Subject Land Acquisition Same Judge G B Deva, N T C.N.B.