Coms,C.Ex - Kol-Iii vs Esab India on 19 December, 2018
i) Ld.DR submitted that the disputed clearances are made on stock
transfer basis to the depots by paying duty at the factory gate. In
terms of Section 4 of the Central Excise Act, 1944 read with Rule 4
of the Central Excise Valuation Rules, 1975, the respondent was
required to pay duty on the value of such goods sold by the
assessee from the depots at about the same time. He emphasized
that the respondent has paid duty at prices lower than the prices
prevalent on that date at the time of clearance. He placed reliance
on the decision of the Tribunal in the case of Ganges Manufacturing
Co. Ltd. vs. Commissioner of C.Ex., Kolkata-IV [2012(276) ELT 262
(Tri.-Kolkata)]. The Tribunal in that case had occasion to consider
the sale of goods through consignment agents for period similar to
the present dispute. The Tribunal decided that in terms of the
provisions of Section 4 prevalent at the relevant time, duty was
required to be discharged at the time of clearances from the factory
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Appeal No.E/105/2009
to the consignment agent, at the prices at which the goods were
sold from the consignment agent, at or about the same time. By
following such decision he prayed that the impugned order is not
justified and required to be set aside.