2023 (12) TMI 40 - AT - Central Excise

Reduction in demand - receipt of defective goods from their suppliers and non-issuance of invoices at the time of sending the goods for replacement - HELD THAT - The Commissioner (appeals) has already considered all the disparities pointed out by the Appellant and reduced the demand from Rs. 2,39,986/- to Rs.108,182. The valuation aspect raised by the Appellant has been dealt with by the Commissioner (Appeals) and the Appellant submits that there is no dispute of valuation now. Thus, it is observed that the Ld. Commissioner (Appeals) has already dealt with all the issues in the impugned order and there is no infirmity in the impugned order for interference. Accordingly, the demand of duty confirmed in the impugned order is upheld. Penalty - HELD THAT - The Appellant is entitled for the reduced penalty of 25% of the duty confirmed. Accordingly, if the Appellant pays the demand of duty confirmed in the impugned order along with interest on or before 31.12.2023, they are entitled for the reduced penalty of 25% of the demand confirmed. If they do not comply with the payment, the penalty of Rs.1,08,182/- will stand. Appeal disposed off.

Summary

Issues involved: Appeal against Order-in-Appeal, reduction of duty demand, valuation aspect, penalty reduction.

Reduction of Duty Demand: The Appellant, a manufacturer of TVs, received defective goods from suppliers without issuing invoices for replacements. A show cause notice was issued demanding duty of Rs.2,39,986. The duty demanded was confirmed in the Order-in-Original, but on appeal, the Commissioner (Appeals) reduced the demand to Rs.1,08,182. The Commissioner provided clear findings for the reduction, considering disparities pointed out by the Appellant. The Commissioner concluded that the valuation aspect was not disputed by the Appellant, leading to the modification of the demand calculation. The Commissioner addressed all issues raised and upheld the reduced demand, finding no infirmity in the order for interference. Therefore, the demand of duty confirmed in the impugned order was upheld.

Penalty Reduction: The Appellant was entitled to a reduced penalty of 25% of the duty confirmed if the payment was made on or before 31.12.2023. Failure to comply with the payment would result in a penalty of Rs.1,08,182 standing. The appeal was disposed of based on these terms, with the Appellant given the option to avail of the reduced penalty by meeting the payment deadline. The operative part of the order was pronounced in open court, finalizing the decision on the penalty aspect as well.