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TMI Blog2017 (1) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... ombay [1998 (4) TMI 221 - CEGAT, NEW DELHI], where it was held that designing and engineering charges collected from buyers under separate debit notes were deemed to be part of invoice price irrespective of fact that they were not shown in the invoice but in separate debit notes. Extended period of limitation - Held that: - Since the fact of realization of the additional amounts vide debit notes was not disclosed by the appellants to the department at any stage, it amounts to suppression of vital facts from the department and therefore, we hold that proviso to Section 11A(1) has been correctly invoked for demanding the excise duty beyond the normal period of one year. Appeal dismissed - decided against appellant. - E/2248/2007 - A/61 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral excise duty but without including the modification charges. It appeared from the invoices that the goods were not removed from the premises of the appellant even after payment of duty and were retained against D-3 and used for production of auto components. However, the Appellant later removed all the tools and dies including tools and dies on which they collected modification charges through debit notes without paying the duty on the modification charges. 3. A show cause notice dated 22.11.2004 was issued to the appellant proposing for inclusion in the assessable value of modification charges i.e. additional sale consideration received by the Appellant from customers by way of debit notes for modifications in the tools/dies/fixtu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es to be made in the parts and components for which certain modifications in the Tools and Dies became necessary and had to be carried out at a cost of ₹ 95,97,000/- for which debit notes were raised by the appellant against Krupp JBM Pvt Ltd. He further argued that the modification charges in respect of modification of the goods already sold, to suit the changing requirements of the buyer at the subsequent point of time can never give rise to any liability of duty of excise nor any liability to enhancement of the assessable value of goods already sold under Sec. 4 both before 01.07.2000 or thereafter. The charges for subsequent modification after sale of goods cannot form part of transaction value when the transaction was already con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the part nos. do not tally does not automatically lead to conclusion that the impugned tools and dies were manufactured by the appellants, in the absence of any positive evidence placed by the department on record. I also find that the adjudicating authority has also failed to properly scrutinize the import documents and rejecting the claim of the appellants by observing that the part nos. in the SCN and import documents do not tally. On that basis and the fact that appellants had produced a chart of all these sixteen items in their submission, the first appellate authority has directed the Adjudicating Authority to pass fresh order after carrying out necessary verification out to the satisfaction of the appellants and after afford ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of realization of the additional amounts vide debit notes was not disclosed by the appellants to the department at any stage, it amounts to suppression of vital facts from the department and therefore, we hold that proviso to Section 11A(1) has been correctly invoked for demanding the excise duty beyond the normal period of one year. The case law of Supreme Industries (supra) is not applicable as the appellants in that case were not aware of the repair costs to be incurred in future and the appellants were amortizing the mould values. In the instant case, appellants were fully aware of the debit notes issued for the purpose of notification charges and still did not declare the same at any stage. The case law of Triveni Engineering Industr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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