Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 692 - CESTAT KOLKATASeeking dropping of penalty imposed under Rule 26 of the Central Excise Rules, 2002 - under-valuation of the goods supplied to the Appellants - non-inclusion of value of drawing & design supplied by the Appellants free of cost - HELD THAT:- Similar issue has come up before this Tribunal in the case of COMMISSIONER OF CENTRAL EXCISE JAMSHEDPUR VERSUS TATA MOTORS [2008 (12) TMI 129 - CESTAT KOLKATA] where penalty imposed on the supplier of drawing and design free of cost to the job-worker under Rule 26 was set aside - It was held in the case that the escapement of the additional duty for the impugned period was not on account of suppression, misstatement etc., but on account of a mistake of law on the part of the assesses as well as Departmental Authorities. Hence, while holding that the cost of drawings and designs @0.085%, as provided by M/s. Tata Motors, is includible in the assessable value of the components, we hold that the demand for the same can only be sustained for the normal period of limitation. Therefore, following the decision of this Tribunal in the case of Tata Motors Ltd, it is held that penalty under Rule 26 is not imposable on the Appellant. Accordingly, the impugned orders qua imposing penalties on the Appellants are set aside - Appeal allowed.
|