TMI Blog2011 (9) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... 000-TRU, dated 30-6-2000 to support his contention that in the transaction value any amount which is paid or payable or on behalf of the assessee is to be included but as submitted by the ld. Counsel, there are several decisions relating to the period when Administrative Price Mechanism was followed holding that in view of the Administrative Price Mechanism, the transaction adopted by the Petroleum companies as per the Government directives has to be accepted. This is because in Administrative Price Mechanism the Government determines the transaction value and the margins at different levels with all the relevant issues. Oil marketing companies did not have powers to make alterations. When the price was determined by Government, it would ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he penalty. The observations of the COD while permitting the appellant to challenge the penalty are reproduced below : The Committee heard both the parties to the dispute. The representative of Indian Oil Corporation (IOC) contended that since the company had no intention to evade duty and there had been no suppression of facts to evade payment of duty, the SCN, which was also time-barred is not sustainable. Accordingly penalty and interest were not leviable. The representative of CBEC, however, stated that there was no infirmity in the decision of the CIT (A) in this case. The Committee noted that the company had paid the duty after issue of the SCN and payment of interest was mandatory. However, it was of the view that there was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the penalty aspect of the order before CESTAT. The COD was formed with a view to reduce the litigation between public sector companies and the Government. If the COD was to say no appeal both sides are expected to accept the decision. When COD says that IOC is allowed to file appeal against penalty only it reflects the intention of the Government that when there is no mala fide intention the duty and interest should be paid by the public sector unit without taking shelter under the provisions of Section 11A which requires extended period to be invoked by specifically alleging suppression or misdeclaration of facts and only when such suppression or misdeclaration is established, duty demand can be made for a period not more than one year. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Department. Further he also relies upon the circular issued by Board No. 354/81/2000-TRU, dated 30-6-2000 to support his contention that in the transaction value any amount which is paid or payable or on behalf of the assessee is to be included but as submitted by the ld. Counsel, there are several decisions relating to the period when Administrative Price Mechanism was followed holding that in view of the Administrative Price Mechanism, the transaction adopted by the Petroleum companies as per the Government directives has to be accepted. This is because in Administrative Price Mechanism the Government determines the transaction value and the margins at different levels with all the relevant issues. Oil marketing companies did not have p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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