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2017 (3) TMI 595 - AT - Central ExciseDiscrepancy in the stock of finished goods - short payment and non-payment of duty on the removal of the capital goods - shortage of capital goods in the factory - collection of transportation charges from their customers under the separate bill - Held that: - As regard the excess stock, we found that total value of the excess goods was ₹ 95,158/- whereas redemption fine was imposed to the tune of ₹ 55,000/- which is on very higher side therefore the redemption fine deserve to be reduced - As regard the demand of Cenvat Credit in respect of capital goods, appellant have paid 50% duty on the removal of capital goods and the same amount was availed by them therefore this issue is contentious that whether the duty against Cenvat credit of 50% should be 100% or 50%. The appellant have not contested demand and paid the same alongwith interest - Regarding the credit on measuring instrument also, the appellant have paid duty alongwith interest without contesting the same - As regard the duty of freight, it is settled in various judgments that merely because the freight amount was not separately shown in the excess invoice, deduction cannot be disallowed. The duty cannot be charged on the freight accordingly demand of ₹ 84,428/- on account of freight is not sustainable - we do not find any malafide intention of the appellant to evade excise duty short payment/ nonpayment of duty appears to be only due to inadvertence or accounting error therefore it is not the fit case for imposition of penalty under Section 11AC - appeal disposed off - decided partly in favor of appellants.
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