1999 (11) TMI 296 - AT - Central Excise

Summary

Issues:
1. Determination of assessable value for goods cleared between factories.
2. Applicability of Section 4(i)(a) of the Act on sale of goods.
3. Modvat credit availability for duty paid in factory.
4. Imposition of penalty under Section 11AC.
5. Intent to evade duty and impact on assessable value.
6. Interpretation of intent to evade duty under Section 11AC.
7. Invocation of extended period under Section 11A based on wilful mis-statement.
8. Limitation period for demand of duty.

Summary:
1. The appellant manufactured thin laminated plastic sheets in one factory and converted them into tubes in other factories. The assessable value for goods cleared between factories was in question.
2. The contention regarding the sale of goods to a specific buyer not being ordinary sales was dismissed as the goods were sold at a price, indicating normal trade practices.
3. The argument for Modvat credit availability for duty paid in the factory was accepted, nullifying the demand for duty.
4. The imposition of penalty was challenged based on the appellant's lack of intent to evade duty, supported by the Supreme Court's judgment.
5. The absence of intent to evade duty was crucial in determining the assessable value and penalty imposition.
6. The interpretation of intent to evade duty under Section 11AC was discussed, emphasizing the need for its presence.
7. The appellant's case on limitation was upheld as the demand for duty was found to be barred by limitation due to the absence of intent to evade payment.
8. Ultimately, the appeal was allowed, and the impugned order was set aside.