VIACOM ELECTRONICS PVT. LTD., Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) ALL the three stay petitions are being disposed off by a common order as they arise out of the same impugned order passed by the Commissioner, Central Excise, Vadodara, vide which he has confirmed demand of duty of Rs. 16,47,74,592/ - (Rupees sixteen crores forty seven lakhs seventy four thousand five hundred and ninety two only) as differential duty against M/s. Viacom Electronics Pvt Ltd., along with imposition of personal penalty of identical amount under Section 11AC of the Central Excise Act, 1944. In addition, an amount of Rs. 10,20,000/ -(Rupees ten lakhs twenty thousand only) stands confirmed against the said applicant by rejecting the modvat credit in terms of provisions of Rule 571(5) of Central Excise Rules, 1944 along with imposition of personal penalty of identical amount under Rule 571(4) of Central Excise Rules, 1944. In addition, personal penalties of varying amounts ranging from Rs. 1 crore to Rs. 5 crores have been imposed upon the other applicants under the provisions of Rule 209A of Central Excise Rules, 1944.

(2.) AS per facts on record, M/s. Viacom Electronics Pvt Ltd., were engaged in the manufacture of AKAI brand Colour Television sets and Audio/Hi -Fi systems falling under Chapter 85 of Central Excise Tariff Act. 1985. The said goods were being manufactured by the appellants for and on behalf of M/s. Baron International Ltd., and were being marketed by them. Inasmuch as during the period in question i.e. from 01/06/98 to 01/12/98, Television sets was one of the specified goods under the provisions of Section 4A was of Central Excise Act, the assessable value was to be determined with reference to the retail sale price declared on the goods in terms of the provisions of the Standard Weights and Measurements Act, 1976. The appellant was clearing their goods on payment of duty in terms of Serial No. 229 (i) of Notification No. 5/98 -CE dated 02/06/98, on the basis of the maximum retail price (MRP) declared on the Colour Televisions.

(3.) THE revenue's case is that as a result of investigation conducted and the evidences collected, it was found that the Colour Television Sets were being sold by M/s. Baron International Ltd., at a price more than the declared MRP. It was also found that M/s. Baron International, who were marketing the Colour Television Sets have collected additional amount, over and above the declared MRP from their dealers. Statements of various persons recorded during the course of investigation strengthened the revenue's stand.