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2019 (2) TMI 1480 - CESTAT MUMBAIJurisdiction - power of proper officer to issue demand notice - Held that:- There is no discrepancy in the aforesaid observation of the learned Commissioner (Appeals) nor any contrary evidence produced by the Appellant. Also, on going through the show-cause notice, we find that it was issued on the basis of the investigation carried out by Pune-II Commissionerate and also the reply has been filed by the appellant to the Additional Commissioner, Pune-II Commissionerate, therefore, the demand notice was properly issued by the proper officer who has been authorized and it is valid. Imposition of penalty - allegation of the Revenue is that while considering the landed cost of free issue material, for the purpose of valuation, the appellant M/s SPM Tools has failed to consider the entire value of the free issue material used by them in the manufacture of finished goods on which the appellant discharged duty on clearing the same to M/s KFPL - Held that:- The appellant M/s SPM Tool Pvt. Ltd. were fully aware of the fact that the total landed cost of free issue material ought to be considered while determining the assessable value and the duty at the time of clearance of the goods be determined on the total value, but suppressed the correct assessable value by taking into consideration a part of the value of the free issue material. Hence, in our opinion, the plea of the appellant that it was a bona fide mistake on the part of the appellant cannot be acceptable - the authorities below are justified in imposing penalty equivalent to the duty under Section 11AC of Central Excise Act, 1944 and the case of the appellant falls under the exclusion clause i.e. Explanation (1) of Section 11A(2B) of Central Excise Act, 1944. Benefit of reduced penalty - Held that:- The appellant has paid the entire amount of differential duty with interest before issue of show-cause notice, therefore, they are eligible to discharge 25% of the penalty in accordance with Section 11AC of the Central Excise Act, 1944. The impugned order is modified to this extent of extending 25% of the penalty amount. CENVAT Credit - duty paying invoices - supplementary invoices - Held that:- The learned Commissioner (Appeals) has not decided the issue on merit but set aside the adjudication order denying benefit of CENVAT Credit on supplementary invoices issued by M/s SPM Tools in favour of respondent M/s Fuel Instrument Engineers Pvt. Ltd. on the ground that it was premature since the charge of suppression against M/s SPM Tool was not decided - matter remanded to the adjudicating authority to decide the issue of admissibility of CENVAT Credit on the supplementary invoices issued by M/s SPM Tools. Appeal allowed in part and part matter on remand.
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