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2015 (4) TMI 603 - AT - Central ExciseValuation of goods - sale of goods through depot - Demand of differential duty - extended period of limitation - Penalty u/s 11AC - Bar of limitation - Held that:- motor vehicle in question is first cleared from the factory to a depot of the appellant and subsequently it is transferred to another depot from where the motor vehicle is sold. - valuation in case of goods sold at depot, shall be governed by the provision of above Rule 7. On careful reading of the said rule we are of the view that price prevailing at that depot from where the goods is sold shall apply. Contention of the appellant is not acceptable that at the time of initial clearance of motor vehicle to first depot, goods are intended to be sold from the first depot irrespective whether the motor vehicle first cleared to particular depot and subsequent transferred to another depot. The fact remains that the goods are sold from the subsequent depot, and not from first depot therefore in terms of Rule 7 a depot from where the goods is actually sold, the price prevailing at that depot at the time of clearance of the goods from factory shall be the correct transaction value for charging the excise duty. - Accordingly, in terms of Rule 7, in case goods not sold from the factory but transferred to the depot the price prevailing at depot at the time of removal of the goods from the factory shall apply as transaction value. - Decided against the assessee. Extended period of limitation - Held that:- the demand for the period prior to audit observation raised on January 2001 can be raised up to 5 years as there was clear suppression during that period. Hence, the demand of duty for the period up to January 2001 is correct and legal. In the show cause notice dated 19.7.2005, the demand was raised for the period from 1.7.2000 to 30.9.2004. In this regard, we observe that when the fact of the issue came to the notice of the Department in January, 2001, subsequent to that it cannot be said that there was suppression on the part of the appellant - though demand of duty for period involved in these appeals (except for the period February, 2001 to June 2004) is sustainable on merit, however demand of duty pertaining to the period February 2001 to June 2004 is hereby dropped being time bar. - Decided partly in favour of assessee.
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