SPL LIMITED Vs. CCE

JUDGEMENT

(1.) APPELLANT M/s. SPL have came up in appeal against the OIO 02 -07/Commr/RP/2006 dt. 27.1.2006 passed by Commissioner of Central Excise, Rohtak, wherein the Commissioner confirmed the duty demand of Rs. 1,11,01,225/ - in respect of two show cause notices dated 4.2.2004. Penalty of equivalent amount of Rs. 1,11,01,225/ - was imposed under section 11AC read with Rule 25 of Central Excise Rules, 2002 on the appellant. He also confirmed the demand of Rs. 38,07,686/ - in respect of four SCNs dated 21.06.2004 and 21.4.2005. A penalty of Rs. 15 lakh was imposed on M/s. SPL under Rule 25 of Central Excise Rules, 2002. Charging and recover interest at appropriate rate on the aggregate duty demand of Rs. 1,49,08,911/ - was ordered. Details of all the six SCNs stated above involving duty and period involved is extracted below: -

(2.) MAIN allegation in the show cause notice in respect of appellant was that it cleared the ceramic tiles to different bulk buyers viz. builders, contractual, industrial buyers, hotel, schools, etc. Department has alleged that instead of assessing that under section 4A of the Central Excise Act, 1944 on contracted price under section 4 thereof. But appellant's defence was that once they have declared retail sale price of such goods duty is leviable under section 4A of Central Excise Act, 1944 but not under section 4 of the said Act in view of the provisions of sub -section (2) of section 4A. Section 4A(1)(2) reads as under: -

(3.) APPELLANT invited reference to para 6 of CBEC Circular dated 28.2.2002 to submit that it is governed by section 4A of the Act and relevant part of the Circular reads as under: