Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 936 - AT - Central ExciseCENVAT Credit - bought out drums which were cleared on payment of duty, after carrying out the process of coating and painting - denial of credit on the ground hat the activity do not amount to manufacture - Held that:- The appellant have availed credit on bought out drums and at the time of clearance, after the activity of coating and painting, cleared the same on payment of duty. This is permissible under Rule 16 of Central Excise Rules, 2002 - credit on bought out drums is allowed. Demand of duty - third party inspection charges, wherein the inspection/ certification was done on the request of the buyers - Held that:- These inspection charges is only in those cases where buyers had made a request for such inspection/ testing. Otherwise, in other clearances, neither any testing was done nor such inspection/ testing charges were recovered from the buyers - since the inspection/ testing was carried out by the third party on the request of buyer, the charges of the same shall not be included in the assessable value - reliance placed in the case of COMMISSIONER OF C. EX., AHMEDABAD-II VERSUS LUBI SUBMERSIBLES LTD. [2015 (10) TMI 35 - CESTAT AHMEDABAD], where it is held that for the inspection/ testing charges, done at the request of the parties, should not be included in the assessable value - demand set aside. Penalty - Held that:- Penalty on Director set aside - As regards the penalty imposed on the appellant, as the penalty was imposed under Section 11AC and admittedly the samples cleared were liable to duty and the appellant have knowingly cleared the drums without payment of duty, therefore, penalty corresponding to demand of ₹ 7,563/- is maintainable. Appeal allowed in part.
|