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2019 (2) TMI 11 - AT - Central ExciseValuation - includibility - It is the case of the Revenue that the cost of the cylinders which the appellant charged from their customers should part of the assessable value being the additional consideration for sale of the BOPP films (since the cylinders are made for each customer) - extended period of limitation - Held that:- These amounts were recovered from their customers as liquidated damages only when the customers did not place the orders as agreed to. Therefore, the cost which they incurred in getting the cylinders engraved as per the requirement of the customers was recovered from them. Therefore, these amounts cannot be included as additional consideration for sale in the assessable value of the final products. The nature of these receipts by the appellant from their customers could not be readily ascertained because there were no written agreements between the appellant and customers. As far as the remaining amount is concerned, as there is only evidence that these amounts have been collected by the appellant from their customers and there is no evidence that these amounts pertain to any other transaction between the appellant and customer we find that this is a consideration for sale of their final product. Accordingly, the demand on this account needs to be upheld Extended period of limitation - Held that:- The books of accounts were not required to be submitted to the officers of Central Excise. The returns which were filed with the central excise Department must reflect the correct and total value of the amounts recovered by the appellant from the customers. They have not done so. Only investigation by the Department and the statements recorded by them revealed these facts - the extended period of limitation under Section 11A(2) of the Central Excise Act, has been correctly invoked - The amount of interest and penalties imposed upon the appellant also get correspondingly reduced. Appeal allowed in part.
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