9911796707
TMI Blog2014 (7) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... .S. Ingots/billets. The other raw materials for manufacture of rounds are furnace oil, coal, consumables and lubricants, etc. besides electricity. The period of dispute in this case is from 2007-08 to 30.11.2012. The appellant were availing cenvat credit of central excise duty paid on inputs and capital goods and of service tax paid on input service used in or in relation to the manufacture of final products. 3. The department, on finding that the percentage of duty payment through PLA during 2007-08, 2008-09, 2009-10, 2010-11 and April to November, 2011 was 0.75%, 3.05%, 5.40%, 6.20% and 2.97 % respectively, initiated inquiries to ascertain the reasons for the same. On the basis of the inquiry, the department was of the view that the valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder-in-original dated 20.12.2012 by which he confirmed the above mentioned duty demand along with interest thereon under Section 11 AB and besides this, imposed penalty of equal amount on them under Section 11 AC. 5. In this order the Commissioner held that the declared assessable value of the appellant's product is not correct, that the same has been under declared, inasmuch as the price is not the sole consideration for the sale. Against this order of the Commissioner, this appeal has been filed along with stay application. 6. Heard both the sides. Though today this matter was listed for hearing of only the stay application, after hearing this matter for sometime, the Bench was of the view that the appeal itself can be taken up for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0% of the cost of production, that the department has ignored the fact that during 2010-11, even according to the Department, the duty actually paid through PLA was more than the duty which according to the department was required to be paid through PLA, that the show cause notice has been issued on totally arbitrary basis and the duty has been summarily confirmed by the Commissioner in the impugned order. In view of the above, the impugned order is, not sustainable. 8. Shri Amresh Jain, ld. Departmental Representative defended the impugned order by reiterating the findings of the Commissioner in it and pleaded that the department, through inquiry, had determined the value addition per M.T. by totalling up the expenses on coal, electricity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , metal rolls/lubricants, cartages/general expenses and the gross profit booked in their balance sheet for the respective years and Odividing this total by the quantity of M.S. rounds. On this basis, it is alleged that during 2007-2008, 2008-09, 2009-10, 2010-11, April 2011 to November 2011, the value addition per M.T. should have been Rs. 2486/- PMT, Rs. 2701/- PMT, Rs. 2286/- PMT, Rs. 1942/- PMT and Rs. 2098/- PMT respectively, while the actual value addition shown by the appellant during these periods was in the range of Rs. 500/- to Rs. 1500/- PMT. According to the department, the appellant have not been able to give any explanation further. However, it is also not disputed that the appellant not only manufactured the goods on their own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g market price of the appellant's final product or with the customers, no inquiry has been done with the suppliers of the raw materials to ascertain as to whether there were any incidents of bogus receipts of raw materials. While the Commissioner in para 4.8 of the impugned order has given a finding that the price was not the sole consideration for sale, he has not spelt out as to what is the additional consideration and its monetary value. If the price had been influenced by considerations other than sale, that consideration should have been mentioned. But the order does not mention any additional consideration which had influenced the price. Reading the impugned order gives the impression as if the allegations made in the show cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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