- (1.) The Assessee herein is engaged in the manufacture of detergent powder and scouring powder allegedly falling under Chapter Heading 3402.90 and 3405.40 respectively of the schedule to Central Excise Tariff Act 1985. The said activity was carried out by the Assessee on job work basis for its principal, viz., Hindustan Lever Ltd. (HLL). The Assessee filed declaration in Annexure II under Rule 173C of Central Excise Rules, 1944 (for short, "the Act").
(2.) The Assessee was clearing the goods manufactured by it on stock transfer basis to the depots of their above-named principal in various parts of the country. However, it allegedly did not supply depot sale prices to find out the assessable value for charging Excise Duty. On checking of RT-12 returns it was found that the Assessee had declared the value of the detergent less than the price at which it was being sold. And in respect of scouring powder the Assessee had failed to supply the depot sale price. Therefore, four show cause notices dated, 29th January, 1998, 01st May, 1998, 28th October, 1998 and 18th March, 1999 were issued to the Assessee to show cause as to why duty as per details annexed to the notices be not recovered under Section 11A of the Act and penalty under Rule 173Q of he Central Excise Rules be not imposed upon it.
(3.) Adjudicating authority held, that the central Excise Duty on the scouring powder was required to be paid as per Section 4 of the Act and in case of detergent the central Excise Duty was chargeable under Section 4A of he Act. The authority-in-original confirmed the demand of differential duty and also imposed penalty.;