COMMISSIONER OF CENTRAL EXCISE Vs. HINDUSTAN NATIONAL GLASS AND INDUSTRIES LIMITED
LAWS(SC)-2016-1-57
SUPREME COURT OF INDIA
Decided on January 14,2016

COMMISSIONER OF CENTRAL EXCISE Appellant
VERSUS
Hindustan National Glass And Industries Limited Respondents

JUDGEMENT

- (1.) A show cause notice under F. No. Prev/CEX/AEI/OBL/ 141/99/797 dated 16th August, 2002, was issued to M/s. Owens Brockway (I) Pvt. Ltd., the predecessor-company of the respondent which is presently known as Hindustan National Glass and Industries Limited, by the Commissioner of Central Excise, Pune-I, alleging that the manufacturing company was not adding the additional consideration received from the customers in the form of advance and, therefore, the notional interest accrued thereon is to be added to the sale price, for such non-addition had resulted in depression of the assessable value of the goods, namely, the bottles manufactured by the respondent-assessee.
(2.) In the show cause notice, it was mentioned that the assessee had short paid the duty on its products, that is, printed glass bottles, by under-valuing the same at the time of clearance from its factory inasmuch as it did not add "additional consideration" received from M/s. Coca Cola India and M/s. Pepsico India Holdings Pvt. Ltd. The show cause notice referred to the statement of the Manager (Sales) of the Company from which it was discernible that the respondent-assessee had received 90% advance from M/s. Coca Cola India and 100% advance from M/s. Pepsico India Holdings Pvt. Ltd. for the goods and it was giving 3-4% discount to the said Companies.
(3.) After the reply to the show cause was received, the adjudicating authority passed an order on 28th November, 2003, making a demand of Rs. 33,91,934,00/- under Section 11A(1) of the Central Excise Act, 1944 (for short "the Act") being the duty payable on the additional consideration received by the assessee from the customers in the form of notional interest accrued on advance payments and also imposed penalty for the same amount under Section 11AC of the Act. Apart from that, the adjudicating authority confirmed certain other demands.;


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