COMMNR. OF CENTRAL EXCISE, CHANDIGARH versus M/S. PEPSI FOODS LTD.

COMMNR. OF CENTRAL EXCISE, CHANDIGARH versus M/S. PEPSI FOODS LTD.

Freight charges between the factory and depot of the related person are to be included in the assessable value when goods are sold to a related person, and the place of removal is the depot of the related person. However, penalty under Section 11AC cannot be sustained in the absence of fraud or mis-statement.

Source-derived case information.

Parties
Appellant: COMMNR. OF CENTRAL EXCISE, CHANDIGARH; Respondent: M/S. PEPSI FOODS LTD.
Jurisdiction
India
Judgment Date
10 December 2010
Procedural Posture
Civil Appeal / Appeal Against CEGAT Order Dated 08.08.2002
Outcome
Appeals partly allowed
Legal Topics
Excise Duty Valuation, Penalty Under Central Excise
Tax Law Excise Duty Valuation Penalty Under Central Excise

Source-derived case record

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Parties

COMMNR. OF CENTRAL EXCISE, CHANDIGARH

Appellant

M/S. PEPSI FOODS LTD.

Respondent

Procedural Posture

Civil Appeal / Appeal Against CEGAT Order Dated 08.08.2002

Legal Issues

  1. 1 Whether freight charges between the factory of the assessee and the depot of the related person are to be included in the assessable value for excise duty when goods are sold to a related person.
  2. 2 Whether penalty under Section 11AC of the Central Excise Act, 1944 can be imposed without finding of fraud, suppression or misstatement.

Ratio Decidendi

Freight charges between the factory and depot of the related person are to be included in the assessable value when goods are sold to a related person, and the place of removal is the depot of the related person. However, penalty under Section 11AC cannot be sustained in the absence of fraud or mis-statement.

Court Disposition

Appeals partly allowed

Orders

  • That part of the order-in-original imposing penalty is quashed; save as aforesaid, the order-in-original is upheld.
  • No costs.