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TMI Blog2018 (7) TMI 1666X X X X Extracts X X X X X X X X Extracts X X X X ..... voice value of the finished product no customer will pay these prices against such debit notes again. This would go to prove beyond doubt that the amount charged by raising debit notes on account of Development & Maintenance of Design and Art work are not incorporated in the value of finished product and is required to be included in assessable value. Demand upheld - appeal dismissed - decided against appellant. - Ex.Appeal No.302/08 - F/76428/2018 - Dated:- 27-6-2018 - SHRI P. K. CHOUDHARY, JUDICIAL MEMBER and SHRI C. L. MAHAR, TECHNICAL MEMBER Shri S. P. Siddhanta, Consultant for the Appellant (s) Shri S. Mukhopadhyay, Supdt. (A.R.) for the Revenue (s) ORDER Per Shri C.L.Mahar : This is an appeal filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants. The appeal before the ld.Commissioner (Appeals) also did not succeed and the appellants are now before us. 3. It has been the contention of the appellant that the amount of charges towards the design in layout preparation are collected on account of development of layout designs for printed cartoons manufactured by them, but whole expenditure, which have been incurred by them towards drawing, designing and preparation of layout design cannot be fully linked with the manufactured product as many such designs are not accepted by their customer and the expenditure made on such rejected designs only form the business expenditure and cannot be added to the assessable value of the manufacture of printed cartoons. 4. The ld.D.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand from time to time. At times a plea has been taken these charges are not includible due to the fact these are reimbursed by the customers being the printing cylinder cost, and at times plea has been taken that these charges are not towards cost of the cylinders but for maintenance of printing cylinder. (c) The appellant has now submitted that these charges are processing charges and are included in the cost of cylinder which has been amortised. In the cost sheets submitted by the appellant there is no mention of charges recovered by debit notes on account of Development Maintenance of Design and Art work . The annual report of the assessee itself says gravure printing involved image design and processing work. For the image de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o, has rendered themselves liable to penalty under Rule 173Q of the erstwhile Central Excise Rules, 1944. The appellant has pleaded that there can be no question of suppression as facts were already known to department in as much the department had issued an earlier notice dated 1-2-1994. Our finding is that the appellant have not disclosed the fact in the relevant assessment documents during the period involved in this case, the imposition of penalty of ₹ 1 crore on evasion of duty of ₹ 2,20,11,957/- is justified and accordingly upheld. 7. In view of the above, we hold that we do not find any lacuna in the impugned Order-in-appeal dated 11.03.2008 and therefore, the appeal of the appellant does not have any merit and there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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