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2018 (7) TMI 528 - AT - Central ExciseValuation - transmission and power shift transmission elements and parts thereof - inclusion of value of free of cost components/raw materials supplied by M/s Ford India Private Ltd. (M/s FIPL) - demand of duty with interest and penalty u/s 11AC - Extended period of limitation - intent to evade present or not? - Held that:- There is no denial of the fact that M/s FIPL has revised the value of free of cost raw material supplied by them to the appellant retrospectively and since the value of F.O.C. raw materials was the basis for determination of assessable value of the manufactured products for payment of central excise duty. It was the responsibility of the appellant to revise the price of his manufactured products as soon as they came to know of revision of value of the F.O.C. raw materials - It is seen that Hon’ble Supreme Court in its various pronouncements has held that only non-payment of Central Excise Duty because of certain innocuous omissions cannot be compared with collusion or willful misstatement or suppression of facts etc. as provided under Section 11A of Central Excise Act, 1944. Whether the appellant has willfully done certain proactive acts which can lead to the invocation of elements such as fraud, collusion, willful misstatement or suppression of facts under Section 11AC? - Held that:- The appellant was not in a situation of control in this case and revision of prices of his manufactured product, squarely depended on M/s F.I.P.L. providing the correct value of their F.O.C. components. As soon as the appellant came to know that the value of F.O.C. products has been revised on higher side for past years by M/s F.I.P.L. the appellant has immediately deposited the excise duty short paid alongwith interest. The short payment of Central Excise duty on account of re-revised prices of F.O.C. products was neither deliberate nor with any malafide intentions and it was because of the facts that the circumstances of the matter were beyond the control of the appellant and therefore in our opinion though Central Excise duty is certainly leviable on the revised value of the appellants products supplied to M/s F.I.P.L. but the case is certainly not made out for levy of penalty under Section 11AC of Central Excise Act, 1944. The Central Excise duty short paid on the clearances effected with the assessable value which was determined on the basis of re-revised value of F.O.C. components/raw material is recoverable under Section 11A of Central Excise Act, 1944 alongwith interest as leviable under Section 11AA/11AB of Central Excise Act, 1944 - penalty set aside - appeal allowed in part.
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