ESCORTS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The issue involved in the present writ petition relates to deposit of the amount of impugned demand as a condition precedent to hearing of appeals before the Collector (Appeals). The facts leading to the filing of this petition are that during the relevant period of 31-7-87 to 6-1-88, i.e. the period covered by the impugned order of the Assistant Collector, dated 28-11-89, motorcycle were cleared ex-factory for sales in the wholesale price which was available with the respondent within the meaning of sec. 4(l)(a) of the Central Excise and Salt Act. 1944 (hereinafter referred to as the Act). Apart from the ex- factory sales on wholesale price, the petitioners also sold motor- cycles in retail through their depot in Ghaziabad and in some cases from the factory to various customers all over India. The petitioners' case is that once the ex-factory wholesale price is available. the same would be applicable to all clearances made from the factory and, therefore, it is not permissible in law to determine the assessable value with regard the sales in retail on a different basis. In other words, the assessable value in respect of the sales made in retail would also be the same as the assessable value for sales made in wholesale ex-factory.

(2.) As regards the subsequen' period covered by the Assistant Collector's order dated 30-11-89, i.e. period from 7-1-88 to 10-9-89, holding that the normal wholesale price applicable for U.P. State should be the wholesale price charged from' dealers of UP which is in excess of declared wholesale price under Section 4(l)(a) of the Act, the party was directed to file a separate price list of wholesale price for sales in UP State. The further case of the petitioners is that w.e.f. 22-6-88, they had made sales to UP dealers from their Ghaziabad depot after stock transfers from the factory at Delhi to its depot at Ghaziabad, and when the ex-factory prices are available, the same should be taken as assessable value as against ex-depot prices also.

(3.) In compliance of the aforesaid orders of the Asstt, Collector, the Superintendent issued a demand order for a sum of Rs. 69,59,353.29P., the alleged duty short paid for the period August, 1987 to October, 1989.