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2016 (9) TMI 1235 - CESTAT NEW DELHI

2016 (9) TMI 1235 - CESTAT NEW DELHI - 2016 (341) E.L.T. 455 (Tri. - Del.) - Demand and imposition of penalty - cash discount granted on the chassis cleared on payment of duty - non-inclusion of the amount of freight, insurance and octroi paid on the chassis received by it from M/s.Tata Motors in arriving at the assessable value on which the duty was paid by it - Held that:- the goods namely chassis were received by the appellant from M/s. Tata Motors Ltd. under proper central excise invoices an .....

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supplied by Tata Motors in arriving at the assessable value of the final product by the appellant, we find that Chartered Accountant’s Certificate dated 01.06.2007 was submitted by the appellant to the effect that cost of transportation, insurance, road tax, entry tax, octroi etc. upto the place of the consignee was included on the average basis in the assessable value of the final product of M/s. Tata Motors Ltd. and that such assessable value is used for payment of duty of excise at the time o .....

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can be raised on M/s. Tata Motors and not on the appellant. Further there is nothing on record to suggest that the appellant paid anything more than the amount mentioned in the Tata Motors invoices. In other words, the appellant has not paid any freight, insurance or octroi in respect of such chassis, and therefore, question of the appellant adding these elements in arriving at the assessable value of its final products would simply not arise. Also when the impugned demand is not found sustainab .....

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by the Noticee on the cash discount and special discount amounting to ₹ 38,41,268/- (Duty ₹ 37,67,431/-+ Ed.Cess ₹ 73,837/-) is hereby confirmed in terms of the provisions of Section 11A of the Central Excise Act, 1944. (ii) Demand of Central Excise duty allegedly not paid by the Noticee on the Cevant Set Off amount amounting to ₹ 41,87,485/- (Duty ₹ 41,08,181/-+Ed. Cess 79.304/-) is hereby dropped since the same has been passed on after payment of duty. (iii) The .....

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r this period demand of duty in terms of Rsule 10A of the Central Excise Valuation Rules 2000 has already been confirmed. Thus the total demand confirmed on this account is ₹ 54,00.076/- (Rs. Fifty Four Lacs and Seventy Six only]. (iv) A penalty of ₹ 92,41,344/- (Rs. Ninety Two Lacs Forty One Thousand Three Hundred and Forty Four only) is imposed upon them under Section 11AC of the Central Excise Act, 1944 read with Rule 25 of Central Excise Rules, 2002. 2. During the hearing, both s .....

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y it. Ld. Advocate contended that the discount given to the appellant by M/s.Tata Motors was the same as the one allowed by M/s. Tata Motors to other independent buyers and that the appellant had not paid any freight, octroi or insurance in respect of chassis received by it and therefore, the question of including such freight, insurance and octori in the assessable value simply does not arise. Ld. D.R. essentially supported the impugned order. 3. We have heard both the sides and perused the rec .....

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d paid duty on chassis after allowing such discount. Regarding non-inclusion of freight, insurance and octroi in respect of such chassis supplied by Tata Motors in arriving at the assessable value of the final product by the appellant, we find that Chartered Accountant s Certificate dated 01.06.2007 was submitted by the appellant to the effect that cost of transportation, insurance, road tax, entry tax, octroi etc. upto the place of the consignee was included on the average basis in the assessab .....

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