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 1342 - CESTAT CHENNAIValuation - scrap - job-work - scrap generated at the job workers end should have been returned to appellant, but the same was retained by job workers who sell the same directly, for which value at ₹ 4/- per kg is predetermined and adjusted for calculating and paying machined rates to the job workers - Held that: - the adoption of assessable value of ₹ 4/- per kg by the appellant for calculating their duty liability on the scrap generated at the job workers end cannot be then disputed by the department. There can be no further demand of duty on the generated physically available scrap other than that discharged by appellant on value of ₹ 4/- per kg. In consequence, there will also be no penalty in respect of the duty liability discharged by this manner. Coming to the duty liability on burning/transportation loss, irrecovable scrap, we find that the learned counsel has conceded the same. However, he prays for cum-duty benefit - Held that: - while maintaining the notional value of the quantum involved on such process loss etc. at ₹ 4/- per kg., the appellants are extended cum-duty benefit for purposes of calculating their duty liability thereon - the matter is remanded back to the adjudicating authority for revised calculation of duty liability. Penalty - Held that: - it is not in dispute that the appellants have paid the entire duty liability at the rate of ₹ 4/- per kg even before issue of SCN, hence, in our considered opinion, the beneficiary provisions of Section 11AC can be applied and the appellants will have to pay penalty equal to only 25% of the duty liability. Appeal allowed by way of remand.
|