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TMI Blog2007 (9) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... /components. The undertook this work on job work basis for M/s. TAFE Ltd., M/s. Hindustan Motors Ltd., M/s. Audco India Ltd. and M/s. Lucas TVS Ltd. etc. On 23.03.98, officers of the Directorate General of Anti-Evasion visited the premises of SLA, recovered records/documents maintained by them and recorded statements from the Managing Partner of SLA and General Manager of M/s. TAFE projects. M/s. TAFE projects (hereafter TPD) is a division of M/s. TAFE Ltd., for which also SLA had converted rough castings into tractor parts/components. On prima facie finding that SLA had evaded central excise duty payable on tractor parts manufactured and cleared to M/s. TPD. A show cause notice was issued which was adjudicated vide the impugned order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e duty due on machined parts cleared to TPD, they would have collected the same including it in their job bills SLA ought to have cleared machined parts on payment of duty. However, he found that SLA could not be said to have not paid the duty due intentionally to evade payment of duty. By evading duty no gain had accrued to SLA. In the instant case, SLA Could not be said to have evaded duty deliberately with any awareness of benefits or consequences. Accordingly, the Commissioner restricted the demand to six months only. As they were entitled to benefit of SSI notification for the above clearances he dropped the proposals in the Show Cause Notice. 5. Revenue has filed the instant appeal seeking orders to recover the duty not paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Central Excise Rules, 1944. M/s. SLA have failed on all counts to intimate the Central Excise department which only goes to prove their in mala fide intentions. The above purpose is further strengthened by the fact that while they had chosen to correspond to other departments such as the Commercial Taxes department and the Income Tax department, they appear to have deliberately suppressed the knowledge from the Central Excise department. Therefore, it appears that the Commissioner ought to have invoked proviso to Section 11A(1) by taking into consideration the facts stated above and should have demanded duty accordingly. 4.5 It further appears that the Commissioner ought to have imposed penalty under Section 11AC and demanded interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal of the revenue has been pending since May, 2000, the same is taken up for disposal. 7. We have carefully considered the case records and the submissions made by the Departmental Representative. We find that SLA had been receiving rough castings and returning finished parts to M/s. TAFE Ltd., M/s. Hindustan Motors Ltd., M/s. Audco india Ltd., M/s. Lucas TVS Ltd. etc. They had been receiving inputs under Rule 57F(3) challans from these customers and regularly from TAFE. SLA were furnishing statutory returns to Income Tax department and Commercial Taxes department. It is obvious that SLA was aware of the central excise formalities and the requirement to pay duty on the goods manufactured by it. SLA had kept the department in the da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rances were actually made from Ma 94 only. The SSI Notification No. 1/93- C.E. dated 28-3-93 as amended by Notification No. 87/94-C.E. dated 15-4-94, al lowed SSI benefit to goods manufactured bearing the code no. design no. and drawing no. etc. of the buyer. The exemption under Notification No. 1/93 has to be extended to the impugned clearances, in terms of the said notification as amended. We also find that duty liability has to be re-worked as per Section 4(4)(d)(ii) of the Act considering the clearance value as the cum duty value. As regards the penalty under Section 11AC and interest under Section 11AB of the Act, we find that these provisions have to be applied only in respect of clearances made with effect from 28-9-96. In the circum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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