2011 (3) TMI 1179 - AT - Central Excise

Demand of duty, interest and penalties - Valuation - submissions of the appellants that excise paid on inputs in respect of which modvat credit is taken cannot be included in the cost of raw material - Held that - As appellants has produced the certificate issued by the chartered accountant in respect of valuation of normal price, certificate points out the freight charges incurred by AEL for getting material from BAL to AEL as well as loading and unloading charges consumables overheads and profits this certificate was not produced by the appellants before this Tribunal as well as before the adjudicating authority - matter is remanded back to the adjudicating authority to considering the certificate issued by the chartered accountant.

Summary

Issues: Appeal against confirmation of demand of duty, interest, and penalties on the appellants.

The judgment by the Appellate Tribunal CESTAT, Mumbai involved an appeal against the confirmation of demand of duty, interest, and penalties on the appellants, including M/s Aurangabad Electricals Ltd. (AEL), Bajaj Auto Ltd. (BAL), Shri Ranjeet Gupta, and Shri A.R. Mali. The Tribunal initially remanded the matter for recalculation of demands, agreeing that excise paid on inputs for which modvat credit is taken cannot be included in the cost of raw material. The case was then taken to the Hon'ble Apex Court, which remanded the matter back to the Tribunal to examine a certificate issued by the appellants' chartered accountant regarding freight charges, loading and unloading charges, and profits incurred by AEL. During the final hearing, the appellants sought an adjournment as their senior counsel was occupied elsewhere. However, the Tribunal decided to proceed without the senior counsel. It was noted that the certificate from the chartered accountant had not been produced before the adjudicating authority, leading to the passing of the impugned order. The Tribunal, in the interest of justice, remanded the matter back to the adjudicating authority to consider the certificate and determine the actual excisable value, setting aside the impugned order and allowing the appeal by way of remand. The appellants were granted a reasonable opportunity to present their case in light of the certificate issued by the chartered accountant.