2001 (3) TMI 356 - AT - Customs

Summary

Issues:
1. Whether the cost of printing on lay flat tubings should be added to the assessable value for duty calculation.
2. Imposition of penalty for non-inclusion of printing cost in the assessable value.

Issue 1:
The case involved a dispute regarding the inclusion of the cost of printing on lay flat tubings in the assessable value for duty calculation. The appellants had paid duty on the tubings, which were used in manufacturing plastic bags after being printed with customers' logos. The show cause notice contended that printing constituted a manufacturing process, necessitating the addition of printing costs to the assessable value. The Assistant Commissioner, relying on a Supreme Court judgment, upheld the demand and imposed a penalty. The Commissioner affirmed this decision, leading to the appeal.

Issue 2:
During the proceedings, the appellant's counsel acknowledged that the Supreme Court's precedent covered the issue of printing costs. However, it was argued that there was no justification for imposing a penalty. The appellants had promptly paid the differential duty upon receiving the show cause notice, indicating compliance. Consequently, the Tribunal found no valid reason to uphold the penalty orders. While confirming the duty payment, the Tribunal set aside the penalty imposition, partially allowing the appeal.

This judgment highlights the Tribunal's nuanced approach in distinguishing between duty payment obligations and penalty imposition, emphasizing compliance with statutory requirements while addressing disputes over assessable values and manufacturing processes.