M/S A.K. Spintex Ltd vs Cce, Jaipur Ii

[Arising out of the Order-in-Appeal No. 449 (HKS) CE/JPR-II/ 2006 dated 28/07/2006 passed by The Commissioner (Appeals-II), Customs & Central Excise, Jaipur.]

For Approval and signature :

Honble Shri Ashok Jindal, Member (Judicial)

Honble Shri B. Ravichandran, Member (Technical)

1. Whether Press Reporters may be allowed to see :

the Order for publication as per Rule 27 of the

CESTAT (Procedure) Rules, 1982?

2. Whether it would be released under Rule 27 of :

the CESTAT (Procedure) Rules, 1982 for

publication in any authoritative report or not?

3. Whether their Lordships wish to see the fair :

copy of the order?

4. Whether order is to be circulated to the :

Department Authorities?

M/s A.K. Spintex Ltd. Appellant

Versus

CCE, Jaipur  II Respondent

Appearance

Shri Kumar Vikram and Ms. Surabhi Sinha, Advocates  for the appellant.

Shri R.K. Grover, Authorized Representative (DR)  for the Respondent.

CORAM: Honble Shri Ashok Jindal, Member (Judicial)

Honble Shri B. Ravichandran, Member (Technical)

Final Order No. 52640/2015 Dated : 20/08/2015

Per. Ashok Jindal :-

The appellant is in the appeal against the impugned order demanding duty on the basis of debit note raised by the appellant.

2. The appellant is engaged in manufacturing of Processed Man Made Fabrics and clearing the same against the invoices on payment of duty to their buyers. In certain cases after ascertaining some value difference, they issued debit notes to their buyers but on the said amount, they have not paid the duty. It is the contention of the appellant as the amount raised by way of debit notes have not been realized from the buyers, therefore, they are not liable to pay duty thereon. But Revenue is of the view that the amount raised on account of valuation by way of debit note is the value to be added in the assessable value of the goods cleared by the appellant, therefore, they are liable to pay duty.

3. Heard both the sides and considered their submissions. Admittedly in this case, the appellant has raised debit notes on the aspect of valuation and as per Section 4 of the Central Excise Act, 1944 duty is payable on the assessable value. The amount raised by way of debit notes is of an additional consideration of the goods sold by the appellant, therefore, the same were required to be added in the assessable value. In these terms, we hold that the amount shown in debit note is to be added in the assessable value and appellant is required to pay duty thereon. In view of the above, appeal is dismissed.

(Dictated and pronounced in open court)

(Ashok Jindal)

Member (Judicial)

(B. Ravichandran)

Member (Technical)

PK

??

??

??

??

3