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TMI Blog2017 (1) TMI 1277X X X X Extracts X X X X X X X X Extracts X X X X ..... lant is liable to pay Central Excise duty as per valuation determined in the impugned order alongwith interest and no penalty is imposable - appeal disposed off - decided against Assessee. - E/1262,1263,2249/2010 - A60104-60106/2017-EX[DB] - Dated:- 10-1-2017 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Judicial) None - for the appellant Sh. Satyapal, AR- for the respondent ORDER Per Ashok Jindal 1. The appellants are in appeal against the impugned order wherein demand of duty has been confirmed for the period of January 2008 to October 2008 alongwith interest against the main appellant and penalty is imposed on the co-appellant. 2. The brief facts of the case are that the Revenue ini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een settled by the Hon ble Supreme Court in the case of CCE, Jaipur-II vs. Super Synotex (India) Ltd. (Supra) and in Maruti Suzuki India ltd.- 2014 (307) ELT 625 (SC). The appellants have no case on merits. This has been admitted by the learned counsel by the appellant. However, the appellants are contesting a part of the demand confirmed, on the question of time bar. The first show cause notice dated 04.11.2008 was issued invoking extended period of limitation in terms of proviso to Section 11A of the Central Excise Act, 1944. The appellants main plea is that the whole issue regarding the quantum of deduction of sales tax in respect of incentive schemes announced by the State Government/credit set off, is a subject matter of interpretati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n view of the aforesaid analysis, we are of the considered opinion that the assessee in all the appeal are entitled to get the benefit of the circular dated 12.03.1998 which protects the industrial units availing incentive scheme as there is a conceptual book adjustment of the sales tax paid to the Department. But with effect from 01.07.2000 they shall only be entitled to the benefit of the amount actually paid to the Department, i.e. 25%. Needles to emphasise, the set off shall operate only in respect of the amount has been paid on the raw material and inputs on which the sales tax/purchase tax has been paid. That being the position the adjudication by the Tribunal is not sustainable. Similarly, the determination by the original adjudicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Government. This is as per a incentive scheme announced by the State. All these transactions are duly accounted for and maintained. As already stated there is a clear possibility of bonafide doubt regarding the quantum of deduction of sales tax in view of different interpretation prevalent during the time. The Tribunal in the case of Indian Oil Corporation Ltd. Vs. CCE, Ahmedabad reported in 2013 (291) ELT 449 (Tri. Ahmd), in a matter involving Central Excise duty consequent on re-calculation of sales tax, held that the issue involved bonafide dispute as requires interpretation of valuation provisions and no extended period can be invoked. 8. Considering the above discussion, we are of the opinion that while the appellants are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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