2004 (2) TMI 571

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..... the Respondent. [Order per : C.N.B. Nair, Member (T)]. - The respondent manufactures LPG cylinders for Oil Companies. For use in such manufacture, oil companies supplied the respondent valves (for the cylinders) free of charge. The cost of such free supply valves is also required to be included for the purpose of determining the normal price (assessable value) of the cylinders, while assessing .....

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..... against the above, Revenue holds that the correct method would be the following :- For price of cylinder inclusive of all : Rs. 658/- Total landing cost of valve = Rs. 54.56 Less Freight : Rs. 30/-       Less S.T. : Rs. 24.15 Modvat availed = Rs. 7.14 Cum duty price : Rs. 603.85 Assessable     Assessable value of cylinder : Rs. 520.56 value of Val .....

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..... s extent, we find merit in the present appeal of the Revenue. 4. Now we come to the claim for interest and penalty. The demand in the present case has been raised during the normal period. It is well settled that provisions in the law relating to penalty and interest do not apply to such demands. Moreover, the dispute in the present case is about the correct method of calculation. Such a dis .....

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