Western India Ceramics Pvt Ltd Vs Commissioner of C.E. & S.T. (CESTAT Ahmedabad)
The appeals were filed by Western India Ceramics Pvt. Ltd., its Director, and an employee against an Order-in-Original confirming central excise duty, penalties and confiscation. The dispute related to the period March 2005 to March 2009, during which the company manufactured vitrified polished tiles assessed under Section 4A of the Central Excise Act, 1944 on the basis of the declared Retail Sale Price (RSP) after allowing the prescribed abatement.
The Directorate General of Central Excise Intelligence (DGCEI) initiated an investigation in March 2008 into the correctness of the declared RSP. A show cause notice dated 27 March 2010 alleged that the goods were 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 to reject the declared RSP and re-determine it by adopting the MRP mentioned in a price list effective from 23 February 2005 recovered from a dealer, Krishna Ceramic Choice, Bangalore. Differential duty of Rs. 9,19,34,781 was demanded under the proviso to Section 11A along with interest under Section 11AB, and penalties were proposed. A separate show cause notice dated 17 July 2009 proposed confiscation of 202 boxes of tiles seized at the Kolkata depot on the ground that no RSP was declared on them.
