COMMISSIONER OF CENTRAL EXCISE Vs. U T LIMITED

JUDGEMENT

(1.) This appeal has been preferred by the Revenue proposing following substantial question of law :

(2.) The assessee is manufacturing Hydraulic Pump Assembly and parts thereof, Hydraulic Valve and parts thereof, Hydraulic lift and parts thereof and High Pressure Jet Cleaning Machine and parts thereof falling under Chapter Heading Nos. 84.13, 84.81, 87.08 and 84.24 respectively of the Schedule to the Central Excise Tariff Act, 1985. During test check of records/invoices, it was observed that the assessee was resorting to undervaluation of goods cleared to M/s. U.T. Limited, Hosur, by charging lower rates as compared to other buyers. The adjudicating authority raised a demand of Rs. 3,98,784/- and imposed penalty of Rs. 50,000/-. The Commissioner (Appeals) upheld the demand but set aside the penalty and the said view has been affirmed by the Tribunal. The Tribunal held that difference in price between supplies made to the market and clearances made to the assessee's own unit was for the reason that the goods cleared to its own unit were semi-finished and even when demand was upheld, there could be two views on alleged undervaluation and, therefore, penalty was not justified.

(3.) Only contention raised in support of the appeal is that the goods were identical and that stand of the assessee was false.