Dabur India Ltd Vs Commissioner of Central Excise (CESTAT Chandigarh)
The appeal was filed against an order dated 27.04.2018 passed by the Commissioner (Appeals), which confirmed a demand of excise duty amounting to ₹6,34,589 under Section 11A of the Central Excise Act, 1944, along with interest under Section 11AB and an equal penalty under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC.
The appellant, a manufacturer of various products, had claimed deductions on account of post-manufacturing expenses (PME) such as additional sales tax, octroi, and transportation costs on a weighted average basis while determining the assessable value of goods during the period January 2007 to September 2008. The department disputed these deductions, stating that they were not admissible under Section 4 of the Act and relevant circulars, and issued multiple show cause notices (SCNs).
In earlier proceedings on similar issues, the adjudicating authority had ruled against the appellant, but the Commissioner (Appeals) allowed the appellant’s claims. The department’s appeals against those orders were rejected by the Tribunal, which ruled in favour of the appellant. This earlier Tribunal order was not challenged further by the department.
In the present case, fresh SCNs were issued for a subsequent period, again denying deductions on PME. The adjudicating authority confirmed the demand, and the Commissioner (Appeals) upheld the same, leading to the present appeal.
