2016 (7) TMI 1478 - AT - Central Excise

Valuation - Job-work - fabricating and mounting the bodies of buses and trucks on the chassis - Held that - On merits the issue of liability to duty stands settled against the appellant in the case of AUDI AUTOMOBILES VERSUS COMMISSIONER OF CENTRAL EXCISE, INDORE 2009 (5) TMI 426 - CESTAT, NEW DELHI . Therefore, the duty and interest are recoverable. However, the Tribunal has clearly stated that in view of the facts and circumstances in those cases which are similar to the facts and circumstances in the present cases) no penalty was warranted. Valuation - inclusion of entry tax and VAT in assessable value - Held that - There are no force in the appellants submission that their contention regarding non-includability of taxes in the assessable value for determining the quantum of duty has not been adverted to by the primary adjudicating authority though the contention was raised before him. Matter remanded with the direction that demand should be recomputed, if necessary, after considering the contention of the appellant regarding non-includability of taxes in the assessable value - No penalty is warranted in these cases - appeal allowed by way of remand.

Summary

Issues:
Appeal against duty demand confirmation, penalties, recomputation of demand, inclusion of taxes in assessable value.

Analysis:
The appeals were filed against an Order-in-Original confirming a duty demand of ?11,55,75,287 along with interest and penalties based on several show cause notices. The appellant's advocate cited precedents where duty liability was upheld but penalties were waived. The advocate argued for a recomputation of the demand by deducting taxes like entry tax and VAT from the assessable value. The respondent contended that the appellant engaged in colorable arrangements to evade duty. The Tribunal noted that duty liability was settled against the appellant but penalties were not warranted based on precedents. The Tribunal found the inclusion of taxes in the assessable value was not considered by the adjudicating authority. Consequently, the appeal was allowed, directing no penalties and a recomputation of the demand after considering the exclusion of taxes from the assessable value.