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2007 (2) TMI 461 - AT - Central ExciseDemand of duty - valuation - freight charges - Show Cause Notices - Penalty levied - HELD THAT:- During the period when the depot is also a place of removal, the appellants have stated that they had paid the differential duty demanded on account of the cost of transportation. The appellants have made another point that the department, while calculating the value for depot sales, has adopted the maximum price available on a date prior to the date of sale or after the sale instead of arriving at the normal Transaction Value in terms of Rule 7 as clarified by the Board by taking the value at which the greatest aggregate quantity of the goods have been sold on a date prior to the date of clearance from the factory gate. Further, the greatest aggregate quantity is the largest quantity of identical goods sold on a particular day. If the department had taken the highest price available after the date of clearance, it is not correct. The appellants have contended that in terms of the correct legal position, they have paid the correct duty. In fact, in respect of Show Cause Notice dated 21-4-2004, the impugned order has demanded Rs. 10,36,732/- and the appellants had already paid that amount. As regards, the Show Cause Notice dated 27-1-2004, the Adjudicating Authority has confirmed a demand of Rs. 12,63,496/-. However, the appellants had paid an amount of Rs. 10,36,749/-. In view of the appellants’ explanation for payment of the above amount, no further demand will arise. As regards the first Show Cause Notice, the appellants have paid all the amounts not hit by time-bar. Thus, no further duty is payable by the appellants. Therefore, no penalty is leviable. The penalty imposed on the Director is also not sustainable. Hence, we allow the appeals.
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