Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2005 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (12) TMI 141 - AT - Central ExciseCenvat/Modvat - Inputs credit of duty paid on tool kits - whether supply of tool kits with motor vehicle could be construed as used in or in relation to manufacture of motor vehicle - HELD THAT:- We agree with the respondents that they cannot be directed to pay back the entire credit taken on duty paid tool kits without first adjusting the same against the excess duty paid on the value of the motor vehicles/chassis by inclusion of value of tool kits which was not required to be included. However, since the material on record is not sufficient to determine whether the value of tool kits was included in the assessable value of motor vehicle/chassis cleared by the respondents during the relevant period, we remand this aspect for fresh decision to the jurisdictional Addl. Commissioner who shall verify as to whether the respondents had actually included the value of tool kits in the assessable value of motor vehicle/chassis cleared by them during the period in dispute and then adjust the amount of credit disallowed against the excess duty, if any, paid on the value of motor vehicle/chassis by such inclusion, and recover the difference. He shall pass fresh orders after extending reasonable opportunity of hearing to the assessee and allowing them to place documentary evidences on record to substantiate their contention in this regard. It is open to the respondents to agitate the issue of wrong quantification of credit before him. As regards penalty, we see force in the submission of the respondents that since the issue is entirely one of interpretation of law, it is not a fit case for imposition of penalty, and therefore, reject the prayer of the Revenue for restoration of the penalty imposed upon them by the Adjudicating Authority. The appeal is partly allowed as above - Cross Objection is also disposed of accordingly.
|