2007 (7) TMI 422 - SC - Central Excise

Valuation (Central Excise) Department contended that charges for making printing cylinders were includible in the assessable value and accordingly demand were made alongwith penalty Held the contention correct and penalty amount reduced

Summary

Issues:
Challenging orders passed by CEGAT related to duty levy, rectification application rejection, and acceptance of stand by Commissioner.

Analysis:
1. The appeals involved challenging orders passed by CEGAT regarding duty levy, rectification application rejection, and acceptance of the appellant's stand by the Commissioner. The case revolved around the inclusion of charges for printing cylinders in the assessable value of laminates and pouches by the appellant, leading to a demand for short levied duty.

2. The Tribunal's order emphasized that charges for printing cylinders were part of the assessable value of the final products, and the appellant had not shown any amortization of cylinder costs. The Tribunal remanded the case to the adjudicating authority for determining the correct duty rate, differential duty payable, and penalty amount, which was challenged before CEGAT.

3. CEGAT found the terms of remand specific, highlighting that the appellant's contention of cylinder cost amortization contradicted their previous stand. The CEGAT upheld the Tribunal's decision, emphasizing that the appellant had not proven amortization before the adjudicating authority, leading to the inclusion of cylinder costs in the assessable value.

4. In another appeal, the CESTAT noted the appellant's changing stands regarding the inclusion of printing cylinder charges in the manufacturing cost. The demand for duty was upheld, but the penalty amount was reduced due to the background facts. The CESTAT's order highlighted the appellant's inconsistent positions on the nature of charges related to printing cylinders.

5. The judgment clarified the scope of remand, emphasizing specific issues to be reconsidered by the adjudicating authority. The appeals were dismissed concerning duty levy, but penalties were reduced based on the factual scenarios presented in each case. The detailed analysis provided insights into the complexities of duty assessment and penalty imposition in relation to printing cylinder charges.