TMI Blog2016 (5) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... s stated by the Learned Advocate of the appellant is found to be true then the same ratio laid by other jurisdictional adjudicating authorities has to be followed by AC/DC in charge of Munger factory, including the method of quantification of differential duty. This bench has not made any observations on the merits of the case. The same has to be decided by the Adjudicating authority on the basis of orders passed by adjudicating authorities at Bangalore, Parel, Saharanpur and Kidderpore factory and also the ratio laid by Apex Court on these deductions. - Appeals allowed by way of remand - Excise Appeal No. : E/190-191/2005 - ORDER NO. : FO/A/75444-75445/16 - Dated:- 12-5-2016 - SHRI H.K. THAKUR, TECHNICAL MEMBER AND SHRI P.K. CHOUDHARY , JUDICIAL MEMBER For the Petitioner : Dr. Samir Chakraborty, Advocate For the Respondent : Sri K. Chaudhuri, Supdt. (A.R.) ORDER PER SHRI H.K. THAKUR Appeal No. E/190/2005 has been filed by the appellant against Order-in-Appeal No. 354/PAT/CEX/APPEAL/2004 dated-December 22, 2004 and appeal No. E/191/2005 has been filed against Order-in-Appeal No. 355/PAT/CEX/APPEAL/2004 also dated 22/12/2004. Appeal No. C/190/2005 pertains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arly, cost of CFCs cannot be added; [para 14.3.2] (iii) advertisements and sales promotion expenses incurred by the WDs shall be added; and [para 14.3.3] (iv) similarly, interest including that on the security deposits made by the WDs shall be added ; and [paras 14.3.6, 14.3.8 and 14.3.11] (e) no deduction whatsoever on account of the supposed duty shall be made from the advertisement and sales promotion expenses and interest, while adding these to the price; [para 15.2] 2.2 That various jurisdictional officers in-charge of the factories were directed to finalise the pending provisional assessments in view of the Order-in-Original dated 10/4/1986 passed by the Director General. That for this purpose of finalization of provisional assessment and quantification of duty CBEC directed Principal Collector, Calcutta in terms of D.G.s order to get the matter expedited in consultation with respective commissionerates in charge of all the factories of the appellant. That a workshop was conducted by Principal Collector, Calcutta by inviting officers from the Commissionerates where manufacturing factories of the appellant was working at the relevant time. That a demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was compulsory and made a provision for the WDs for payment of interest under the CSD Scheme by providing additional margin called interest margin. This scheme enabled to give a cover for the flow back of large amounts out of the WDs margin generated by ITC at their hands as interest on debit balances/overruns . That on the basis of the above allegations, it was alleged that ITC had evaded duty by giving certain margins under various heads termed as Generation to its WDs which were a flow back to ITC as it received back the same under the cloak of interest on debit balance and also controlled monitored expenses of WDs on margins such as advertisement and sales promotion, etc. The show cause notice accordingly sought to demand differential duty of ₹ 39.82 crores for the period June 1980 to February, 1983 by including the Wholesale Dealers margin apportioned towards bank charges, ITC collected interest on CSD, advertisement and sales promotion, administrative charges and BTL margins claimed for assessment from time to time in the value of cigarettes for the purpose of assessment of duty. 2.4 That similar show cause notices were also issued to other four factories o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal) vide orders in Appeals 354 355/PAT/CCX/APPEAL/2004 both dated 22/12/2004 against which the present appeals have been filed. 2.7 Learned Advocate appearing on behalf of the appellant submitted that deductions/additions disputed in these proceedings were the following:- (i) PME Charges (ii)Freight Administration Charges (FAC) (iii)Bank Charges (iv)Interest on Cash Security Deposit (CSD) (v) Interest on excess of CSD (vi)Advertisement Sales Promotion (vii)Below the line expenses (viii)Interest on Investments (WD) (IX)Interest on Trading 2.8 That provisional assessments of all other units have been finalized by jurisdictional AC/DCs at Parel, Bangalore Kidderpore also and the issues of PME charges, FAC, CSD Interest on Investments (WD) are not being agitated by the appellant. That AC C. Ex., Saharanpur has also now decided these issues by Order-in-Original No. 04/AC/CE/SRE/2013 dated 19/3/2013 by quantifying the duty liability where ₹ 1,85,43,717/- have been found to be paid in excess by Saharanpur factory That no appeals have been filed by the department against the finalisation orders passed by the other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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