TMI Blog2013 (7) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... tation - There was no specific written agreement for the job-work undertaken by the appellant in respect Tata Motors Limited - The fact that the conversion / job-work charges were not depressed because of the retention of the scrap by the party came to light only after questioning the officials dealing with the matter – Held that:- It is on account of the efforts made by the department during investigation, a clear picture has emerged as to why the job-charges were depressed - Extended period of time could not have been invoked in the present case – Decided against the Assessee. Revenue neutral - Duty discharged by the appellant could have taken as credit by the raw material supplier – Held that:- Relying upon the decision in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Of the above amounts, the party has paid an amount of Rs. 15,79,550/- which has been appropriated and they have requested for stay of the recovery of the balance amount pending disposal of the appeal. 3. The issue involved is regarding inclusion of the value of the scrap retained by the appellants while doing job-work for M/s. Tata Motors Limited and inclusion of the amortised value of the moulds and dyes in the job-work charges which has been provided free-of-cost by M/s. Tata Motors Limited. It is the department's contention that the scrap generated out of the raw materials by M/s. Tata Motors Limited is retained by the appellant which is sold on payment of duty and the job-work charges has been depressed due to retention of the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been placed on a number of judgments such as Continental Foundation vs. Commissioner of Central Excise 2007 (216) ELT 177 (SC); Padmini Products vs. Commissioner of Central Excise 1989 (43) ELT 195 (SC) and Commissioner of Central Excise vs. Chemphar Drugs 1989 (40) ELT 276 (SC. They have adduced the argument that the issue involves interpretation of statutory provisions and it is well settled that in a case involving interpretation of law, no penalty can be imposed and place reliance on a number of judgments, such as (i) Commissioner of Central Excise vs. Sarup Tanneries Limited 2005 (184) ELT 217; (ii) Commissioner of Central Excise vs. Explicit Trading 2004 (169) ELT 205; (iii) Goyal M.G. Gases Ltd. vs. Commissioner of Central Excise 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... absence of any written agreement, this information was not readily available and could be unearthed by the department only after a detailed investigation and hence the department is right in invoking the extended period of time to demand the short-payment of duty. 6. We have considered the submissions. As regards the party's submission that they could have alternatively followed the procedure prescribed under Rule 4(5)(a) of the CENVAT Credit Rules and could have returned the job-worked material without payment of duty, this plea is not sustainable because the party did not opt for the facility provided under the said rule and neither the party followed the procedure prescribed therein. In the absence of exercising any such option or com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e job-worker are totally different and distinct entities and hence the plea of revenue neutrality is prima facie not attracted. We also observe that the applicant has not pleaded any financial hardship in their application for stay of the duty and other amounts demanded. It is made clear here that the above observations are made only in the context of disposal of stay application and do not have any bearing on the final outcome of the appeal. 7. In the light of the foregoing, we are of the view that the party has not prima facie made out a case for complete waiver of the duty demand, interest and penalty imposed. Accordingly, we direct the appellant to make a pre-deposit of the balance amount of duty amounting to Rs. 30,57,319/- (Rs. 46,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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