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2005 (12) TMI 92 - SC - Central ExciseWhether there was value addition on account of galvanization includible in the assessable value of m.s. galvanized pipes forthe period May 1994 to July 1996? Held that:- In the present case, we find that the product cleared from the factory was m.s. galvanized pipes. Galvanization had given value addition to the m.s. pipes. The process of galvanization was incidental to the manufacture of the m.s. galvanized pipes and, therefore, the cost of that process was rightly included in the assessable value. No error in the concurrent findings recorded by the Commissioner and by the Tribunal. In the present case, a penalty of ₹ 10 lacs was imposed by the Commissioner. On appeal, it has been reduced to ₹ 7.5 lacs. No reasons have been given for imposing the penalty. The matter has arisen at the stage of assessment. The appellant has succeeded in showing that the cost of rubber rings (p.p. rings) was not includible in the assessable value of the m.s. galvanized pipes. The matter was, therefore, arguable. Hence, we set aside the penalty of ₹ 7.5 lakhs. Assessee's appeal partly allowed.
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