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2011 (9) TMI 779 - AT - Central ExciseCommissioner confirmed demand of duty along with interest against M/s. M.M. Cylinders (P) Ltd. and imposed penalties - appellant-companies are manufacturers of new and empty LPG Cylinders for the oil marketing companies namely, Indian Oil Corporation Ltd., Bharath Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd - As per investigation conducted by the department, the appellant companies were found to have used a front organization, M/s. Sri Mehala Transport, for the purpose of inflating the freight amount and to reduce the assessable value with intention to evade excise duty - the facts of the present cases require to be analyzed to see whether the findings of the Commissioner that the two appellant-companies have deliberately reduced the assessable value by inflating the cost of transportation are correct or not - If the reasons given for charging higher rate by SMT for transport of the cylinders are to be taken as valid, no explanation is forthcoming for sudden dropping of the freight amount from July 2005 onwards - It does not make sense that the appellant-companies who were claiming their business transactions with SMT as if in the normal course of business, could afford to pay amounts of freight in excess ranging from 69% to 258% - The mere fact that the jurisdictional Superintendent of Central Excise might be aware that the SMT has been used for transport of goods and freight was claimed as abatement may not lead to any conclusion to say that the department was aware of intricate manipulation by the appellant-company - Appeals are rejected
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