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TMI Blog2004 (10) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the Appellant company manufacture electrical transformers and avail of credit of duty paid on inputs; that they also undertake repair work of old and used duty paid damaged transformers received from various sources; that they had imported TOBS which was sent to M/s. Apar Ltd. directly from place of import for processing on job work after furnishing an undertaking under Notification No. 214/86-C.E., dated 25-3-1986; that some of the quantity of the transformer oil processed out of TOBS and received back by the Appellants was used in the repair of old and damaged transformer for which separate account was maintained; that no MODVAT credit was also availed of by them in respect of such quantity of Transformer Oil; that the Revenue has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aders and as such the assessable value for the purpose of levying duty shall be value at the hands of the jobs worker in view of the judgment of the Supreme Court in the case of Ujagar Prints v. U.O.I., 1988 (38) E.L.T. 535 (S.C.). Finally the learned Advocate submitted that the demand is time-barred as the show cause notice was issued on 26-6-2002 for demanding Central Excise duty for the period from December, 1997 to March, 2000 since the Revenue was aware of the practice of using transformer oil for the repair of the old and used transformers; that in February 2000, an amount of Rs. 58,147/- was debited on the advice of the Range Superintendent in the Modvat Credit Account in respect of the process loss of TOBS corresponding to the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty for home consumption from his factory. In the present matter the Appellants have furnished an undertaking as stipulated in the Notification. Further, they have used the transformer oil for repair of the old and used transformers and as such have removed the transformer oil for home consumption instead of using the same in or in relation to the manufacture of the final products in their factory. The Notification permits them to remove the impugned goods for home consumption but "on payment of duty" which they have not done. Accordingly duty is payable by them and has been rightly demanded from them. There is no force in their submission that the duty should have been demanded from job worker who has actually manufactured the goods s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osed the fact that the transformer oil had been cleared as such without payment of duty or used in the repair of old transformer. The letter dated 22-3-2000 is almost at the end of the period which demand of duty has been confirmed for and as such does not attribute the knowledge of the facts to the Department during the relevant period. We thus hold that the extended period of limitation as provided in proviso to Section 11A(1) of the Central Excise Act is invocable and demand of duty is not time-barred. 7. As the Appellants had used the transformer oil without payment of duty, penalty is imposable on Appellant-company. It has been held by the Supreme Court in Zunjarrao Bhikaji Nagarkar v. Union of India, 1999 (112) E.L.T. 772 (S.C.) that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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