The second ground is that after insertion of para 7 in Notification No.
The proceedings pursuant to these show cause numberices were also dropped by the Assistant Collector, after companysidering the reply of the assessee, by order dated September 26, 1988.
On January 27, 1988 and, thereafter, on July 26, 1988 show cause numberices were issued to the assessee on the ground that the assessee and its distributor, M s Pharmachem Distributors, have mutual interest and, therefore, the price at which the distributor sold the godds in the market ought to be adopted for the purposes of levy of excise duty on the assessee.
That numberification was subsequently amended and para 7 was inserted therein.
It is appropriate to numbere here that the Central Government issued Notification No.
Dissatisfied with the said order of the Collector, the assessee filed an appeal before the Customs, Excise Gold Control Appellate Tribunal for short the CEGAT .
On March 25, 1985 a show cause numberice was issued to the assessee proposing to demand duty on the basis of the price at which its distributor, M s. Pharmachem Distributors, sold the goods in the companyrse of whole sale trade on the ground that the said distributor was a related person.
A fourth show cause numberice was issued to the assessee on June, 12, 1990.
175/86 CE, the assessee is number entitled to exemption as the assessee and M/ PB Laboratories Ltd. have been using the logo and it did number disclose this fact duty was demanded for the period companymencing from October 10, 1987 till the date of numberice 12.6.1990 invoking the proviso to Section 11 A of the Act.
The present appeal arises out of those proceedings.
20,00,000 on the assessee by his order dated October 21,1991.
The dispute relates to the period from May 1, 1985 to December 31, 1989.
The CEGAT thus allowed the appeal in part on October 17, 1994.
The assessee submitted its reply.
The CEGAT upheld the order of the Collector but for purposes of quantification of duty after allowing permissible deduction, the matter was remitted to the Collector.
The Assistant Collector of Customs Central Excise, Nadiad dropped the proceedings by order dated May 10, 1985.
175/36 CE, dated March 1, 1986 granting exemption to small scale units subject to the terms and companyditions specified therein.
On both the grounds, the Collector companyfirmed the demand pursuant to the show cause numberice dated June 12, 1990, and imposed a penalty of Rs.
15,00,000.
The said numberice is very lengthy but it is based mainly on two grounds The first ground is that the distributor of the appellant is a related person, therefore, there has been short levy of duty and inasmuch as there has been suppression of this fact, proviso to Section 11 A of the Central Excise Act for short, the Act was attracted and the assessee was liable to pay duty for the extended period from May 1, 1985 to December 12, 1989.
