Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 610 - AT - Central ExciseClandestine removal - computer systems and allied products - job-work - demand on the grounds that the appellant had manufactured and cleared computer systems in the guise of trading of bought out items and evaded payment of duty - Held that: - The salient features of the contract entered into between M/s. Everonn and the appellant specifically mandates that the latter should supply computers/equipment and installing the softwares as per the specifications mentioned in Schedule thereunder at the locations as per the address list attached - It therefore clearly emerges that the appellant was fully in the knowledge that they were supplying completed computer systems and that such complete systems were required to be supplied to the schools. We, therefore cannot digest why appellants, at this stage, are taking resort to the plea that they had not supplied such complete systems or that they had only manufactured CPU. There is no hesitation in holding that the appellant was indubitably supplying completed computer systems as per the contract enjoined on them. This being so, whether the complete computer system was assembled by him after procuring the required components, peripherals and accessories in his own premises or whether he does it at the rented premises at Besant Nagar, Chennai or for that matter even at the schools where he is supposed to supply the systems, will not make any difference to the inevitability that appellant is the manufacturer of these goods. Duty liability cannot be escaped from. The original authority has been generous and considerate in allowing not only Rs.one crore exemption limit of SSI but also has extended cum-duty benefit. In the process, the contract value of ₹ 2,78,80,500/- has been reduced to ₹ 1,61,85,686/- for the purposes of duty levy. Penalty - Held that: - contumacious conduct of the appellant has been exposed, they have attempted to weave a web of deceit with intent to suppress their value of dutiable clearances with intent to evade discharge of required duty liability to the exchequer - Penalty u/s 11AC of the Act is therefore fully justified - for the same reason, the equal penalty u/s 11AC of the Act has been imposed, we set aside the penalty of ₹ 5,00,000/- imposed u/r 173Q of the CER, 1944. Appeal dismissed - decided partly in favor of assessee.
|