TONY ELECTRONICS Vs. C.C.E.

JUDGEMENT

(1.) THE appellant is a manufacturer of Video Magnetic Tapes (VMT) and Blank Video Cassettes (BVC). These goods are liable to central excise duty on ad valorem basis. When they cleared the consignment they discharged duty based on the sale price. The period of dispute is 1996 -97 to 1999 -2000. Under the impugned order, it has been held that the goods were required to be valued based on cost of production and duty discharge based on such valuation. This finding is under challenge in the appeal.

(2.) THE contention of the learned Counsel for the appellant is that in terms of Section 4 of the Central Excise Act, duty liability was on the normal price at which the goods are sold in wholesale to buyers. It is being pointed out that appellant's sales were to independent wholesale buyers and the sale price was the sole consideration, Counsel would contend that the impugned order has shown no reason, for rejection of the sale prices and therefore, the basis of the valuation order in the impugned order is contrary to settled law. Reliance in this connection is placed on the judgment of the Hon'ble Supreme Court in the case of C.C.E., New Delhi v. Guru Nanak Refrigeration Corporation 2003 (153) ELT 249 (SC).

(3.) WE have perused the records and heard the learned SDR also.