9911796707
TMI Blog2014 (2) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... rade India Ltd., 152, SICOP Industrial Area, Kathua (J&K) (Here-in-after called "the Noticee") are holding Central Excise Registration Certificate No. AAACM8484FXM002 for the manufacture of Tin Alloys and Tin Ingots etc. falling under Chapter 80 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) besides other items. The Noticee are availing exemption of Notification No.56/2002-CE dated 14.11.2002 as amended (hereinafter referred to as the said Notification), by way of self credit of duty in terms of Para 2C of the said Notification. 2. During the period from December, 2008 to February, 2009 the Noticee cleared 567.397 MT of Tin Alloy (hereinafter referred to as 'the Impugned goods') at the declared assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comes to Rs.51,30,12,280/-. Thus, it appeared that the Noticee had undervalued their clearances and short paid duty amounting to Rs.1,43,33,544/-." 2. It was alleged that the Noticee had cleared Tin Ingots/Billets to their related person who in turn used the said goods as the raw material for the manufacture of finished goods. The Noticee were required to follow Rule 8 and Rule 9 of the Valuation Rules under which the value of such goods was to be determined at one hundred and ten percent of the cost of production and by not following the said Rules of Valuation, the Noticee undervalued the said goods and hence duty was short paid. 3. It was further alleged that valuation of goods sold to the related persons does not fall within the ambit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reflected in certificate (in Rs.) Total PMT 1 04/08 dated 05.01.2010 287.24 276341185 962056.76 2 05/08 dated 05.01.2010 225.12 240845835 1069855.34 3 06/08 dated 05.01.2010 126.91 145560512 1146958.57 4 07/08 dated 05.01.2010 73.92 81911552 1108110.82 5 08/08 dated Nil 183.85 191845378 1043488.59 6 09/08 dated 05.01.2010 301.57 324945078 1077511.28 7 10/08 dated 30.11.2012 345.383 335359910 970979.78 8 11/08 dated 30.07.2012 237.702 183835582 773386.77 9 12/08 dated 30.11.2012 301.099 189976162 630942.52 10 01/09 dated 30.11.2012 135.744 80377209 592123.48 11 02/09 dated 30.11.2012 6.11 3855059 630942.55 Total 2224.648 2054853462 923675.77 Quantity and value of good produced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. thirty lakh). 12. Method of calculation in these circumstances has to be based on monthly calculations as variations are very wide and average method cannot be adopted. On perusal of production and costing as given in the table in proceeding pass, it is evident that in some months production was very high and in some months, production recorded was too less. Considering overall circumstances, prima facie case is made by the Revenue. 13. In view of above findings, a pre-deposit of Rupees forty lakhs is ordered as a condition for hearing the appeal. This amount should be deposited with in six weeks. Compliance will be noted on 30.12.2013. In the meantime remaining amount of duty and total amount of penalty shall remain stayed till furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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