TMI Blog2015 (4) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... ventory is includible in the assessable value and no reduction of this account can be claimed by the appellant, and in our view, the ratio of this judgment of the Apex Court would be applicable to the cost of raw material inventory also. It has, therefore, to be held that the amount charged from the customers as carrying cost of the extra raw materia linventory would be includible in the assessable value. - Decided against the assessee. Levy of penalty - Held that:- The suppression of fact or contravention of the Provisions of the Central Excise Act, 1944 or of the rules made there under with intent to evade the payment of duty is a state of mind which has to be ascertained from the circumstances of the case. In this case, since the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as extra carrying cost of the raw-material inventory would be includible in the assessable value of the goods. The lower authorities decided this issue against the appellant and have confirmed the duty demand of ₹ 1,54,720/- against the appellant for the period 01.04.2002 to 31.03.2004 alongwith interest thereon under section 11A (1) and imposed penalty of equal amount on them under Rule 25 of Central Excise Act read with section 11AC of the Act. Against this order of the Commissioner (Appeals), this appeal has been filed. 2. Heard both the sides. 3. Ms. Priyanka Goyal, Advocate, the ld. Counsel for the appellant pleaded that the entire raw material requirement for two years had been purchased at a time to ensure timely supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Grover, the ld. DR, defended the impugned order by reiterating the findings of the Commissioner (Appeals) and pleaded that extended period of limitation has been correctly invoked and penalty under section 11 AC has been correctly imposed/ as the appellants, in the ER-1 returns filed by them, has never disclosed the fact of charging of extra inventory cost from their customers under the debit note, that this fact came to the notice of the Department only during audit and thus the payment of duty is on account of wilful suppression of the fact by the assessee. He pleaded that the Apex Court's judgment in case of Uniworth Textiles Ltd. vs. CCE, Raipur (SC) (supra) cited by the ld. Counsel is not applicable to the facts of this case. He, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, it has to be kept in mind that during the period of dispute there was system of self assessment under which an assessee was required to self assesses his duty liability and file ER 1 return to the Jurisdictional Central Excise Officer. In our view, in terms of the system of the self assessment, an assessee was expected to disclose all the facts which were necessary to enable the assessing officer to verify as to whether the self-assessment tax is correct or not and failure to disclose any fact which was necessary to enable the assessing officer to ascertain the correctness of the self assessed tex would amount to suppression of the relevant facts. The suppression of fact or contravention of the Provisions of the Central Excise Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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