Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 16 - AT - Central ExcisePenalty u/s 11AC - Quantum of reversal of credit - Rule 6(3)(b) of CCR - The department's contention is that value for the purpose of 6(3)(b) should be the total contract price minus works contract sales, no other element are deductible from the total value for the purpose of calculating 8% - Held that: - the issue indeed involved interpretation of the valuation provision in a case where a value is towards the works contract and arrived at the value of 6(3)(b). Therefore, looking to the nature of the issue no malafide can be attributed to the appellants. Accordingly, penalty under Section 11AC is not imposable. Job-work - demand of differential amount of 8% between the value of amount charged to the customer and the value on which the job worker reversed 8% - Held that: - the goods were manufactured by the job worker being a manufacturer they have reversed 8% under Rule 6(3)(b). Therefore, no differential duty if any can be raised against the appellants. Therefore, this demand and its corresponding penalty does not sustain, hence the same are set aside. Appeal allowed - decided partly in favor of appellant.
|