Supreme Court admits excise plea against Raymond

The Supreme Court has admitted a couple of petitions filed by the excise department alleging that textile major Raymond Ltd had evaded excise duty of more than Rs 3.62 crore.     

The alleged excise evasion by Raymond relates to the period between June 1997 and June 1998, and July 1998 and December 1999.     

A bench headed by Justice S H Kapadia has admitted the appeals filed by the revenue challenging the sectoral tribunal's ruling that waived interest and penalty imposed by the department.     

The excise department, while holding Raymond guilty of misrepresentation, had issued showcause notice as to why the company should not pay duty of more than Rs 3.62 crore.     

The petition said that the deduction of 5.84 per cent sought for on account of post-removal expenses in the price list (commission to agents, bank charges and freight and insurance charges) had no relation with the discount claimed from the assessable value.     

According to the excise department, the Customs, Excise and Service Tax Appellate Tribunal was not justified in allowing the company's application for rectifying the mistake without considering the evidence on record.