Customs, Excise and Gold Tribunal - Mumbai
Baron International Ltd. vs Commissioner Of Central Excise And ... on 4 October, 2000
Equivalent citations: 2000(72)ECC630
ORDER Gowri Shankar, Member (T)
1. The application is for waiver of deposit of duty of Rs. 5.48 crores approx.
2. We have heard Mr. V. Sridharan, learned Advocate for the applicant and Mr. M.I. Sethna, learned Advocate for the department.
3. The duty has been confirmed on the finding of the Commissioner that the assessable value of the television sets manufactured by M/s. JR Electronics (JRE for short) is to be based on the prices at which these television sets were sold by M/s. Baron International Limited (BIL for short) who purchased their goods through its dealers.
4. The Commissioner has devoted a considerable portion of his order to examining the allegation in the show cause notice issued to both parties. He agrees, clearly that "the detailed analysis earlier in this order makes it clear that the facts and evidence on record do not make out a clear case against M/s. JRE on the basis of which it can be said that M/s. JRE were a dummy of M/s. BIL and therefore differential duty is not recoverable.'" Subsequently, however, he says that "in view of the totality of the circumstances of the cumulative effect of all individual transactions between M/s. JRE and M/s. BIL, a doubt arises in the mind regarding the status of M/s. JRE, I extend the benefit of this doubt in favour of the department, so far as the status of M/s. JRE is concerned."
5. The Commissioner agrees that normally a doubt does not constitute as evidence and that in case of a doubt, the benefit should go to the citizen. He however relies upon the Supreme Court's judgment in Liberty Oils Mills (Pvt) Limited v. CCE . This judgment of the Supreme Court held that where there is a doubt in construing an exemption notification, the benefit should go to the state. The Commissioner however was not concerned with an exemption notification. He was concerned with the allegation that JRE was a dummy of M/s. BIL. Prima facie the Supreme Court's judgment has thus been wrongly applied. It would therefore follow prima facie that when there is a doubt in a situation of this kind not involving an exemption notification, the benefit of doubt should go to the citizen. The benefit of the considerable doubt expressed by the Commissioner therefore has prima facie to go to the applicant.
6. Accordingly, we waive deposit of the duty and stay its recovery.
7. The department has also come up in appeal against the portion of the Commissioner's order dropping the demand for subsequent period. The total revenue involved in both the appeals is around Rs. 50.00 crores. Accordingly, we agree to the suggestion made by both sides for the appeals to be heard together out of turn and direct the appeals to be listed on 11 and 12th October, 2000, dates mutually convenient to both sides.