9911796707
TMI Blog2006 (7) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... . Revenue proceeded against the appellants for the following reasons - (i) The appellants had not included the Screen Development Charges (SDC). (ii) Non-inclusion of freight charges in assessable value. (iii) Non-inclusion of packing charges in assessable value. The lower authority passed an order confirming Rs. 8,28,402/- being the duty short paid. Further, he imposed a penalty of Rs. 8,28,402/-under Section 11AC of the Central Excise Act, 1944. Interest under Section 11AB was also imposed. An amount of Rs. 42,411/- towards freight and an amount of Rs. 20,424/- towards packing charges had already been paid by the appellants. These amounts were adjusted by the lower authority in his order. The appellants approached the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This is not correct in view of the following factual position. Period Debit note amount as verified by the Department and included in the Annexure to the SCN (Rs.) Amount for which the credit note are raised during this period. (As per Annexure VIII) (Rs.) 1-7-98 to 10-12-98 2,97,068/- 52,500/- 1-3-2001 to 31-3-2001 1500/- — 1-4-2001 to 31-3-2002 10,44,650/- 21,000/- 1-4-2002 to 31-3-2003 33,27,157,/- 45,06,020/- TOTAL 46,70,375/- 45,79,520/- (iv) The chain of events leading to the raising of debit notes and credit notes is as follows :-The customer will give small piece of cloth containing the design of art wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) The facts were within the knowledge of the department from December, 2001 when the Audit visited the appellants' unit. But the Show Cause Notice has been issued on 6-8-2003 after a lapse of 20 months and, therefore, the demand for the period up to 6-8-2002 is hit by limitation of time. The following case-law was relied on :- Needle Industries (India) Limited - 1997 (89) E.L.T. 131 (Tri.) (vii) Where the demand is barred by limitation, no penalty under Section 11AC can be imposed. The duty on account of freight and packing charges was paid much before the issue of Show Cause Notice. Therefore, no penalty can be levied under Section 11AC in view of a large number of decisions. (i) Machino Montell (I) Ltd. - 2004 (168) E.L.T. 466 Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also seen the copies of the documents produced. The facts of the case are similar to those dealt with in the case of Creative Dyeing Printing Mills cited by the appellants. In the above - mentioned case, it has been held that when the developed designs ultimately ends in processing/printing order, the differential duty demanded in the Show Cause Notice is not sustainable in law especially when the printing charges have been included in the assessable value. The ratio of the above - mentioned case is clearly applicable to the present case. 6.1As regards short payment on account of non-inclusion of freight and packing charges in the assessable value, it is seen that the short levy had already been paid much before the issue of Show Caus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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