Commissioner of CE And ST Vs Western India Ceramics Pvt Ltd (Supreme Court of India)
Western India Ceramics Pvt. Ltd. manufactured vitrified polished tiles during the period from March 2005 to March 2009. The goods were assessed to Central Excise duty under Section 4A of the Central Excise Act, 1944 on the basis of the Retail Sale Price (RSP) declared on the packages after the prescribed abatement. In March 2008, the DGCEI initiated an investigation into the authenticity of the declared RSP. A show cause notice dated 27.03.2010 alleged that the goods had been sold at prices higher than the declared RSP based on statements of employees, the director, dealers, builders and computer printouts of e-mails allegedly showing cash transactions. The notice proposed rejection of the declared RSP, re-determination of the RSP by adopting the MRP contained in a dealer’s price list dated 23.02.2005, and demanded differential Central Excise duty of ₹9,19,34,781 under the proviso to Section 11A of the Central Excise Act, 1944 together with interest under Section 11AB and penalties. A separate show cause notice dated 17.07.2009 proposed confiscation of 202 boxes of tiles valued at ₹1,71,700 seized at the Kolkata depot for alleged non-declaration of RSP.
Read CESTAT Ahmedabad Order in this case: CESTAT Allows Appeal Against Differential Excise Duty on Re-Determined RSP
