Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 161 - AT - Central ExciseValuation of goods - inclusion of cost of raw material inventory - Whether the amount charged by the appellant from their customer M/s. Bajaj Tempo under debit notes as interest on raw-material inventory, which was the cost of carrying additional raw-material inventory to ensure timely supply of the finished product to the M/s Bajaj Tempo, is to be included in the assessable value or not - Held that:- in terms of the Apex Court's judgement in the case of Bombay Tyre International vs. Union of India reported in [1983 (10) TMI 51 - SUPREME COURT OF INDIA], the cost of carrying finished goods inventory is includible in the assessable value and no reduction of this account can be claimed by the appellant, and in our view, the ratio of this judgment of the Apex Court would be applicable to the cost of raw material inventory also. It has, therefore, to be held that the amount charged from the customers as carrying cost of the extra raw materia linventory would be includible in the assessable value. - Decided against the assessee. Levy of penalty - Held that:- The suppression of fact or contravention of the Provisions of the Central Excise Act, 1944 or of the rules made there under with intent to evade the payment of duty is a state of mind which has to be ascertained from the circumstances of the case. In this case, since the fact of recovery of extra inventory cost from M/s Bajaj Auto under debit notes had not been disclosed in the ER-I returns, it has to be inferred that the short payment was on account of suppression of fact on the part of the assessee and, hence, the longer limitation period has been correctly invoked and penalty under section 11AC has been correctly imposed. - No merit in appeal - Decided against assessee.
|