COMMISSIONER Vs. JET GRANITO PVT LTD

JUDGEMENT

(1.) THE petition is preferred by the Revenue challenging the final order of Settlement Commission dated 8.4.2011. The essence of objecting to the basis determined by the Settlement Commission is of an artificial increase of 10% in price for the next year and reduction of the weighted average MRP by 10% to arrive at MRP for 2007 -08 in the following factual details: -

(2.) DGCEI had twice conducted the search on 24.1.2008 and 18.3.2008 in the midst of heavy security of armed police considering the alleged unruly behaviours of the manufacturers and others. In the circumstances mentioned hereinabove, in case of the present respondent M/s. Jet Granito, no search was conducted and it was summoned for producing the documents on 1.5.2008 and the same were produced on 12.5.2008. It is also averred further that it was revealed from the material presented before the petitioner authority that it suppressed colour/designing, code numbers and varieties of tiles for the period from June, 2007 to March, 2008. This was allegedly done to evade the Central Excise Duty. Central Excise Invoices also did not reflect variety of tiles although they manufactured different shades, colours, designs and quality. In the meantime, all the manufacturers of Gujarat including the present respondent increased MRP of tiles manufactured by them and such enhancement of the MRPs for 1.4.2008 to 31.3.2009 was averred to have been done without making any change/quality/design of the tiles. This enhancement with effect from 1.4.2008 was indicative that prior to this date, respondent manufactured and cleared tiles of different varieties, colours, designs but in Central Excise Invoices it showed only general description of tiles. It is alleged therefore that the respondent indulged in large scale evasion of Central Excise Duty by way of gross under -valuation. This substantial increase in MRP without change in quality in post April, 2008 period was further vindicative of the intelligence of DGCEI, as per the version of petitioner.

(3.) IN the aforementioned premise, a show cause notice was issued to the respondent on 30.9.2009 working out the duty at Rs.44,43,031/ - with proposed penalty on the Director of the respondent company.