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2019 (2) TMI 759 - AT - Central ExciseValuation - inclusion of the value of free supplied goods by the customer’s needs in assessable value - Cum duty benefit - extended period of limitation - Held that:- As regard inclusion of value of free supplied goods by the buyer is undisputedly includable in the assessable value, therefore, the demand on merit on this issue is clearly sustainable. Limitation - cum-duty price - Held that:- Tribunal dealing with the identical set of facts and legal issue in the case of Jimcon Industries [2018 (7) TMI 1503 - SUPREME COURT OF INDIA] held that in case of inclusion of cost of free supplied material, the landed cost has to be added, therefore, there is no question of cum-duty price. In the same case it was held that invocation of the extended period is correct for the reason that free supplied goods and non inclusion of value thereof was not disclosed by the appellant to the department - Therefore, the demand on this count is clearly sustainable. CENVAT Credit - duty paying invoices - endorsed invoice - Held that:- Though the invoice was issued in favour of principle on whose behalf the appellant have manufactured the excisable goods but the facts remains that such invoices were endorsed in favour of the appellant by the principle. The receipt, use of the goods of the said endorse invoice by the appellant is not under dispute. So long the goods on which Cenvat Credit was availed have been used in the manufacture of goods on behalf of principle the credit is correctly available to the appellant - the demand on the issue of Cenvat credit is set aside. Penalty imposed on the director of the company - Held that:- The issue of non-inclusion of value of free supplied goods is technical issue for which the malafide intention on part of the director cannot be attributed - in this nature of case penalizing director is not proper - the penalty imposed on director is set aside. Appeal allowed in part.
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