Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 677 - AT - Central ExciseClandestine removal - Duty on coating charges along with interest and imposition of penalty - as per dept. duty on the bare pipes was paid by the appellant without shifting the bare pipes from the factory premises and the fact that bare pipes had never left the factory and it was only after CTE coating pipes were cleared from the factory was suppressed by the appellant from the department - assessee contention against invoking of extended period of limitation - Held that:- As from the invoices of bare pipes, no details of transport are shown which means the goods did not move outside the factory premises. On the other hand, the goods which were cleared from the factory were coated pipes and in the invoices issued by the appellant for coated pipes, transport vehicle numbers were clearly mentioned. From these observations, it can be concluded that bare pipes have never gone out of the factory premises and appellant merely shifted pipes from SW Division to SPEC Division for the purpose of coating and the goods which were removed outside the factory were in fact the coated pipes given to M/s IOCL. Since the bare pipes had never gone out of the factory and the coating was done within the factory premises, and the goods finally cleared were coated pipes, duty is required to be paid on the coating charges also in the light of decision in the case of Sidhartha Tubes Lt Vs CCE, Indore (2005 (12) TMI 92 - SUPREME COURT OF INDIA). The appellant’s contention that show cause notice is hit by time limit is not acceptable as the activity of coating was done on the bare pipes manufactured by the appellants themselves was never brought to the notice of the department. Moreover, the fact that figures of coating pipes shown in the excise records were not in respect of the bare pipes received from outside for coating was never brought to the notice of the department. This is also seen from fact of entering two separate contracts with M/s IOCL on the same date was also not brought to the notice of the department. This action shows that this was a deliberate attempt to evade duty on the coating charges. Thus the extended period is rightly invokable in this case. Against assessee.
|