9911796707
TMI Blog2000 (12) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Engineering Co. Ltd., Jamshedpur. 2. The matrix of the case is that the appellants are engaged in the manufacture of Axle Brake Assembly falling under sub-heading 8708.00 of the Schedule to the C.E.T.A., 1985.The jurisdictiona1 Assistant Collector gave exemption under Rule 173C(11) of the Central Excise Rules, 1944, to the appellants from filing price list subject to the condition that the price declared in the invoice should represent the value in terms of Section 4 of the Central Excise Act, 1944. As per Section 4, the assessable value of excisable goods inter alia shall include value of inputs, components and parts used in the manufacture of such goods. 2.1. Prior to January, 1992, the appellants were receiving the duty- paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, pleaded that the demand was hit by time-bar. Being not satisfied with the explanation of the appellants, the Commissioner vide the said order confirmed the aforementioned duty and imposed the above penalty on the appellants. Hence, the present appeal before the Tribunal. 3. Shri K.P. Chowdhury, learned Advocate appearing for the appellants, submits that the appellants discharge duty liability on the basis of price declared in the invoice in terms of Rule 173C(11) ibid. The price declared by them was as per the purchase order placed by M/s. T.E.L.Co. He argues that it is not the case of the Department that the appellants declared a price less than the price mentioned in the purchase order. In fact, the price realisation was only to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T.E.L.Co., under challan issued in terms of Rule 57(2) ibid. The fact that wheel cylinder was supplied free of cost under Rule 57(2) and the invoice price had been shown as the assessable value would clearly show that the cost of wheel cylinder was not included in the assessable value. This obvious position would be clear by a mere perusal of the invoice and gate pass submitted by the appellants along with the RT 12 returns. In spite of this, the assessments were finally done. Moreover, during the period prior to January, 1992 the appellants were paying duty on a higher assessable value, which included the cost of wheel cylinder in respect of which Modvat credit was also availed and from January, 1992 the appellants did not take Modvat cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the requisite permission from the competent authority. The appellants did use the said wheel cylinders, received under Rule 57(2), in the manufacture of Assembly Axle Brakes. The fact of the matter is that while clearing the Assemble Axle Brakes, the appellants did not include the cost of the wheel cylinders in the assessable of the same. Evidently, the assessable value arrived at by the appellants is not in accordance with the provisions of Section 4 ibid. In the case of Ujagar Prints v. Union of India reported in 1989 (39) E.L.T. 493 (S.C.), the Hon ble Supreme Court held that the assessable value of the processed fabrics at the hand of processors would be the value of grey fabrics, processing charges and profit margin of the processors. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed was the material of T.E.L.Co., being received under challans in terms of Rule 57F(2). As pointed out by the appellants that they were submitting RT 12 returns along with the necessary documents including invoices, we find that prior to January, 1992 the assessable value of Axle Brake Assembly was higher and when there was a sudden fall in the assessable value it would have certainly attracted attention of the assessing officers specially when the invoices contain remarks about receipt of wheel cylinder under Rule 57(2) from the same company which supplied this material in the past. Either they failed to notice the above remarks in the invoices or after having noticed the same did not know their significance. In either case, the Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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