9911796707
TMI Blog1998 (7) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... n confirmned for the reasons that the value of investment on plant and machinery by the appellants exceeded Rs. 20 lakhs and, therefore, they were not entitled to the benefit of small scale exemption in terms of Notification 77/83 (sic), that they had not included packing and forwarding charges in their assessable value although they had recovered the amount from their customers and that they cleared the goods without the cover of gate pass and without accountal in statutory records during the period 1984-85 to 1988-89. 2. We have heard Shri J.P. Kaushik, learned Counsel and Shri D.S. Negi, learned SDR. 3. Our findings on the issues involved are recorded herein below : (i) Value of investment on plant and machinery According to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the total cost of plant and machinery is Rs. 21,22,725/- which has been arrived at after debiting the plant and machinery account with a sum of Rs. 88,867/- on account of pre-operative expenses and Rs. 62,022/- on account of expenditure incurred on electric installation. This shows that while on the one hand, the Chartered Accountant confirms that there was an investment of Rs. 1,50,889/- (Rs. 88,867/- + 62,022/-), the appellants are trying to contend, on the other hand, that there was no such investment. Since the balance sheet which is a reliable document for the purpose of arriving at the value of investment on plant and machinery shows the figure of Rs. 21,22,725/- and this is further supported by the Chartered Accountant s certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed most of their goods without any packing and no charges were recovered on this account in their invoices. The adjudicating authority has not disputed that some of the machinery was sold without packing. This being the position, viz., that the goods were capable of being brought to the market without any packing, we hold that the cost of packing and forwarding charges cannot be included in the assessable value and, therefore, set aside the finding of the Collector on this issue. (iii) Clearance of goods without cover of gate passes and without accountal in statutory records during the years 1984-1985 to 1988-1989 The defence of the appellants is that these were goods which were originally cleared after payment of duty but received back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 20 lakhs ceiling limit, the appellants are liable to pay duty. (ii) Duty has to be redetermined by the jurisdictional adjudicating authority by applying slab rates prescribed in Notification 77/85 as amended by Notification 118/85. (iii) Cost of packing and forwarding charges are not includible in the assessable value of the appellant s goods. (iv) Duty is payable on clearances reflected in the delivery challan book maintained for clearance without cover of gate passes. (v) The sale price has to be treated as cum-duty price and, therefore, the assessable value and duty demand has to be redetermined and the demand requantified by the jurisdictional adjudicating authority to whom the matter is remanded for this purpose. 5. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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