WHIRLPOOL OF INDIA LTD. Vs. CCE, NEW DELHI

JUDGEMENT

(1.) Appellants herein are engaged in the manufacture and supply of certain items such as super enamelled copper wire, refrigerator parts etc. to one of their units at Faridabad on stock transfer basis to be used captively for further manufacture and clearing the same on payment of duty by taking assessable value on the basis of price declaration filed as per Rule 173C of the Central Excise Rules. Assessable value of the goods was determined on the basis of cost of production in terms of Rule 6B(ii) of the Valuation Rules. The appellant had added 'nil' profits to the cost of production since they claimed that there was no profit during the previous financial year i.e. 1994 -95. However, the audited balance sheet for the year ending 30th September 1995 showed that the appellant had earned 14.91% gross profit which resulted in under -valuation of goods cleared during the period May to September 1996 to the extent of Rs. 2,47,635 and short payment of duty of approximately Rs. 77.74 Lacs as per show cause notice dated 23.11.96 and approximately Rs. 36,000 in respect of notice dated 26.9.96. The entire demand of approximately Rs. 78.11 Lacs was confirmed by the adjudicating authority. he also imposed penalty of Rs. 20,00,000 upon the appellant. In the impugned order the Commissioner (Appeals) has held that the ground for ignoring certain expenses while working out the cost of goods manufactured by the appellant is not revealed in the show cause notice and also not discussed by the adjudicating authority and has, hence, set aside the same and remanded the case for fresh decision.

(2.) Assessees contend that they are aggrieved by the observation in the impugned order that -