2005 (2) TMI 409 - AT - Central Excise

Summary

Issues: Liability of interest under Section 11AB and exclusion of transportation charges from assessable value

Liability of Interest under Section 11AB:
The judgment addressed the issue of liability to pay interest under Section 11AB in detail. It mentioned three show cause notices with different periods involved. The first notice invoked the extended period of limitation, making the interest payable by the appellants. However, for the second notice, as the duty demand was raised within the normal period of limitation, no interest was deemed payable. Regarding the third notice, the judgment highlighted the amendment to Section 11AB effective from 11-5-2001, stating that interest was not payable by the appellants for a specific period but was payable for the rest of the period. The judgment provided a clear analysis of the liability to pay interest under Section 11AB based on the specific circumstances of each show cause notice.

Exclusion of Transportation Charges from Assessable Value:
The judgment also discussed the issue of the exclusion of freight and transportation charges from the assessable value of goods. The appellants contended that they were entitled to exclude these charges based on a Supreme Court judgment. The judgment acknowledged the relevance of the cited case law, which ruled that such charges should not be included in the assessable value of goods sold at the factory gate. Referring to a previous Tribunal order that allowed the exclusion of these charges, the judgment upheld the appellants' entitlement to exclude freight and transportation charges from the assessable value. The analysis provided a clear interpretation of the law and its application to the specific case at hand.

In conclusion, the judgment modified the final order dated 12-8-2004 based on the discussions and findings related to the liability of interest under Section 11AB and the exclusion of transportation charges from the assessable value of goods. The detailed analysis and application of relevant legal principles ensured a comprehensive resolution of the issues raised in the appeal.