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TMI Blog2012 (10) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant M/s. XAL Engineering (I) Pvt. Ltd., (assessee in short) are manufacturers of goods falling under Chapter 84 and 39 of the Central Excise Tariff. The appellant/assessee manufactured machinery falling under both the Chapters exclusively for M/s. Cipla Ltd., and from M/s. Cipla Ltd. the appellant obtained advances for the manufacture of the goods. The department was of the view that the advances were interest free and, therefore, notional interest on such advances should be added to the transaction value of the goods and excise duty should be levied on such value and accordingly, issued a notice dated 26-4-2001 demanding differential duty of excise amounting to Rs. 15,35,783.38 for the period from April 97 to December 2000 under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to Rs. 13,17,479/- by inferring that the appellant's receipt of advance from Cipla influenced the price of the goods supplied and, therefore, the transaction value cannot be accepted as such. The adjudicating authority also demanded interest on the duty confirmed under Section 11AB and also imposed an equivalent penalty under Section 11AC of the Central Excise Act. The appellants are before us against the impugned order. 3. The ld. Counsel for the appellant submits that there is no finding of the adjudicating authority that the price was influenced by the advances received from the customer and their contention in this regard is supported by the Chartered Accountant. In a number of judicial pronouncements, it has been held that noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dded to the value unless the Central Excise Officer has evidence to that effect that the advance received has influenced the fixation of price of the goods by way of charging a lesser price or by offering of special discount of the buyer who has made the advance deposit", in Explanation 2 thereof. Therefore mere receipt of an advance will not ipso facto lead to the conclusion that the transaction price has been depressed unless there is a positive evidence in that regard. In the instant case, there is no such positive evidence led by the department to prove that the transaction value has been depressed on account of receipt of advances received from Cipla, the buyer. Further, in a number of judicial pronouncements relied upon by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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