2002 (2) TMI 234

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..... ise Tariff. On the basis of the intelligence, the department verified the stock and accounts of the appellant and noticed that the appellants did not include the cost of materials supplied free of cost by their customers viz. M/s. TLT Engineering India Pvt. Ltd. It was also noticed that they had realised transportation charges for circulating water piping system cleared to M/s. Gujarat Toruent Engineering Corporation Ltd. in excess of the actual transportation cost incurred. Therefore, the show cause notice was issued on 17-9-98 for the said demands. The demand were therefore resisted by the appellant on the ground that it is barred by time and also that they had not suppressed any facts and all the facts pertaining to receipt of raw materi .....

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..... sed mandatory penalty under Rule 173Q. 3. In the grounds of appeal the appellant have reiterated their points made before the Commissioner and have also indicated that appellants made available the copies of purchase orders (which contain the particulars of free supplies) to the Range Superintendent during his regular visit. The Range Superintendent on perusal of Purchase Order No. 03/900210/1553/95, dated 19-9-95 wrote to them on 14-1-96 asking for copies of contract agreement. Further they could not furnish the required particulars as they do not have any role or control with the customers and their customers. They contend that since the Revenue had all the material fact for non-payment of duty they could have proceeded to issue show ca .....

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..... o be on the basis of any fresh materials unearthed through investigation. The issue was pertaining to non-inclusion of the value of item supplied free of cost by the suppliers. This point was known to the department and therefore it cannot be said that there is suppression of facts to invoke larger period in the matter. The citation referred to the order applies to the facts of the case. The department has to show that the information which was not supplied to them came to light only on detailed investigation and hence had been withheld with an intention to evade duty and that is not the case made out and the investigation is only with relevance to the facts which were already on record and known to the department. Therefore the plea that t .....

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