9911796707
TMI Blog2002 (4) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... with the name of the drug, the name of its manufacturer and other particulars, as ordered to be printed by the pharmaceutical company. For the purpose of printing such particulars, the appellant procures printing cylinders/rollers. Each such cylinder/roller is separately designed as per requirement of the customer. A cylinder can be used for printing a large quantity (10,000 kg.) of aluminium foils. The cost of a cylinder varied from Rs. 800 to Rs. 1500 in the appenant s case. The appellant recovered the cost of the cylinder separately from their customers, and not as a part of the invoice value of the aluminium foils. Consequently, the cost of the cylinders used in the printing of the aluminium foils came to be excluded from the assessabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. v. Commissioner of Central Excise, Meerut [1997 (91) E.L.T. 120] and submitted that the principle of valuation on the amortisation basis remains confirmed by this order. The learned Counsel pointed out that as against the duty demand of over Rs. 8 lakhs made in the impugned order, the total duty payable would be only Rs. 63,000/-, if the short levy is worked out on the principle laid down in the Tribunal s decision. He also pointed out that this amount already remains deposited with the department. 3. On the question of penalties, it is the submission of the appellants that the omission to include the cost of cylinders in the assessable value was not the result of any intent to evade payment of duty. It occurred on account of doubt re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmission that short levy occurred on account of doubts about the includibility of the cost of cylinder in the valuation of aluminium foils. Roller is an essential item used in the manufacture of printed aluminium foils. Therefore, there could be no doubt that it should constitute a part of the cost of manufacture of the aluminium foils. What was in doubt was only the method of apportionment of the cost of the cylinder while computing the assessable value of the aluminium foils. In these circumstances, the imposition of penalty cannot be treated as unwarranted. However, keeping in view the amount of duty actually short levied and other factors, we reduce the penalty on the appellant manufacturer to Rs. 10,000/-. The impugned order does not m ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
