Western India Ceramics Pvt Ltd Vs Commissioner of C.E. & S.T. (CESTAT Ahmedabad)
Western India Ceramics Pvt. Ltd., during the period from March 2005 to March 2009, manufactured vitrified polished tiles that were assessable 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 goods after the prescribed abatement. In March 2008, DGCEI initiated investigations 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 on the basis of 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 SC Judgment in this case: SC Dismissed Time-Barred Excise Appeal Against CESTAT Order
