In the show cause numberice, it was alleged that the assessable value has to be fixed in terms of Rule 6 b i and number under Rule 6 b ii .
The price declarations filed effective from 1.3.1994 along with the questionnaire was approved by the Central Excise authorities.
The respondents were paying excise duty at the time of transferring the stock of SDS to their Barabanki unit and modvat credit of the duty paid was availed in the Barabanki unit.
It was then proposed to fix the assessable value on the basis of the price at which SDS was sold by the following manufacturers for different years Period Other manufacturers Applicable date Value Messrs per ltr.
If the revision was upward, differential duty was discharged on the increased value.
31.8.99 July, 99 C.No.20 CE Somaiya SBZ/61 August, 99 to Rs.4,99,417/ dt.
4/97 to 11/97 Rs.8.30 per ltr.
1.3.94.
VI MP Demand 12 ADJ April, 94 Rs.14,59,49,158.65 116/98/3149 dt.26.3.99 to Feb., 99 SCN No.12/Commnr.
18.1.2000 Dec, 99 Excise duty was levied on SDS for industrial companysumption w.e.f.
The stock of SDS is transferred to their Barabanki unit where it is wholly companysumed in the manufacture of specified chemicals.
1996 97 Rs.5.50 per ltr.
Aggrieved by the above, the assessee filed the appeal before CEGAT.
1994 95 Saraya Distillery 13.6.1994 Rs.20.00 Gorakhpur 1995 96 do 20.6.1995 Rs.12.90 1996 97 do 10.3.1997 Rs.14.00 1997 98 do 20.11.1997 Rs.14.75 4/98 to 2/99 Kisan Sahkari Chini Mills, Ghosi 1.12.1998 Rs.15.50 3/99 to 7/99 do 20.3.1999 Rs.14.25 8/99 to 12/99 do 10/99 Rs.14.25 Thereafter, by a companyrigendum dated 14.1.2000 sale price fixed at Rs.14.25 was companyrected as Rs.15/ .
In their distillery the respondents manufacture Ethyl Alcohol Denatured for short SDS .
12/97 to 11/97 Rs.12.41 per ltr.
With effect from 1.4.1994, when Rule 173C of the Central Excise Rules, 1944 in short the Rules was amended the respondents filed the declarations under Rule 173C also.
Factual background in a nutshell is as follows The respondents are having two manufacturing units a distillery at Captainganj and a chemical factory at Barabanki.
AUD 99/26.3.99 C.No.20 CE Somaiya SBZ/99 March, 99 to Rs.25,12,528/ /550 dt.
Under the order of the adjudicating authority the differential duty demand of Rs.14,89,61,104.00 was companyfirmed on the entire quantity of SDS transferred from Captainganj unit to Barabanki unit during the period from April 1994 to December 1999.
CIVIL APPEAL NO.
4/98 to 3/99 Rs.13.52 per ltr.
The adjudicating authority did number accept the companytentions raised by the respondents.
The assessable value had been arrived at by the respondents on companyting basis in terms of Rule 6 b ii of the Central Excise Valuation Rules, 1975 in short Valuation Rules during the relevant period.
4975 OF 2002 Dr. ARIJIT PASAYAT, J. Challenge in this appeal is to the judgment of the Customs, Excise, and Gold Control Appellate Tribunal, New Delhi in short the CEGAT allowing the appeal filed by the respondents hereinafter referred to as the assessee .
Before the CEGAT challenge was to the order passed by the Commissioner of Central Excise, Allahabad.
