9911796707
TMI Blog2014 (11) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; the 1st respondent/assessee are manufacturers of Carburetors for Cars and they supply Carburetors to M/s. Maruti Udyog Limited, Gurgaon to be fitted into their Esteem and ZEN models of cars manufactured by them. (ii) The assessee was issued a show cause notice dated 28-4-1999 stating that they have collected charges towards technical know-how and this fact was not informed to the department and they have not discharged the duty thereon on the said technical know-how charges and this came to light at the time of inspection and the assessee was called upon to show cause as to why the duty involved on the charges of technical assistance to the tune of Rs. 15,22,036/- should not be demanded from them under Rule 9(2) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to them, there was no mala fide intention on their part, which does not call for invocation of the proviso to Section 11A of the Act. (v) It was further submitted in the reply that the duty demanded by the show cause notice is only Rs. 2,21,422/-, whereas the assessee has already deposited Rs. 15.42 lakhs on 2-12-1997, by mistake and requested the same to be re-credited, being the excess over the demand raised in the show cause notice. (vi) The Original Authority, did not accept the explanation submitted by the assessee and confirmed the demand made in the show cause notice by demanding the excise duty and imposing penalty and interest by order dated 12-8-1999. (vii) Aggrieved by the said order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is belated payment of duty or not?" 3. We have heard Mr. A.C. Manibharathi, learned Standing Counsel for the appellant and Mr. C. Saravanan, learned counsel for the assessee and perused the material placed on record. 4. The short question that falls for consideration is as to whether the assessee's claim was bona fide or as to whether the assessee has acted in a manner willfully evading the payment of tax? 5. We have perused the explanation given by the assessee to the show cause notice. It is a specific case of the assessee that the technical charges which were received from M/s. Maruti Udyog Limited for development of their Carburetors was transferred to the Japanese Company, who were their technical Collaborator and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as action lacking in bona fide. 6. That apart, During the period relevant to the demand in question. Section 11AB of the Act read as follows :- Section 11AB. Interest on delayed payment of duty. - (1) Where any duty of excise has not been levied or paid or has been short-levied or short paid or erroneously refunded by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of duty, the person liable to pay duty as determined under sub-section (2) of Section 11A shall, in addition to the duty, be liable to pay interest at such rate not below ten per cent and not exceeding thirty per cent per annum, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only when excise duty was not levied or paid or short-levied or short paid or erroneously refunded by reason of fraud, collusion or any willful mis-statement or suppression of facts or contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of duty. Thus, when the explanation given by the assessee is found to be bona fide and when the action of the assessee did not lack bona fide and when there being no intention to evade payment of duty, the Tribunal rightly set aside the payment of interest and penalty. In such circumstances, going by the provisions of the said Act and the facts found by the Tribunal, we have no hesitation in confirming the order of the Tribunal. 8. Further, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
