2008 (9) TMI 798 - AT - Central Excise

Summary

Issues involved: Prima facie case against impugned demand of duty for the period March '02 to September '06 u/s Section 24 of the Standards of Weights and Measures (Enforcement) Act, 1985 regarding verification and stamping of Flow Meters and accessories.

Summary:
The Appellate Tribunal CESTAT, Chennai, in the case represented by Shri C. Saravanan, Advocate for the Appellants and Shri V.V. Hariharan, JCDR for the Respondent, examined the records and arguments from both sides. It was found that the appellants had established a prima facie case against the demand of duty concerning the period from March '02 to September '06 related to Flow Meters and accessories. The appellants contended that the Flow Meters were required to be verified and stamped as per Section 24 of the Standards of Weights and Measures (Enforcement) Act, 1985. They further argued that charges collected for verification and stamping were not to be included in the assessable value of the goods. The counsel highlighted that a show cause notice initially issued by the department was withdrawn and substituted later, suggesting that the extended period of limitation was not applicable in this scenario. After considering the submissions, it was observed that the charges collected for verification and stamping did not form part of the transaction value of the goods. Consequently, there was a waiver of pre-deposit and stay of recovery concerning the duty and penalty amounts. The order was dictated and pronounced in the open court.