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2016 (10) TMI 72 - CESTAT AHMEDABAD

2016 (10) TMI 72 - CESTAT AHMEDABAD - TMI - Period of limitation - recovery of interest - late payment of duty - Section 11AB of Central Excise Act, 1944 - assembly/manufacture of Heat Exchangers on job work basis - Held that:- it is found that the first instalment against the duty liability was discharged by the appellant on 09.7.2008 and the final instalment was paid on 31.3.2009 against the total outstanding amount of ₹ 1,80,33,487/-. The Hon’ble Delhi High Court in the case of Hindusta .....

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ibed under Section 11A of the Central Excise Act, 1944. - Imposition of penalty - Rue 25 of the Central Excise Rules 2002 - Held that:- it is found that the appellant was registered with the Central Excise Dept., and they had cleared the manufactured goods on payment of substantial amount of duty while executing first stage of the contract, but failed to discharge duty in executing the 2nd stage of the contract by manufacturing the Heat Exchangers. Even though no suppression has been allege .....

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alty of ₹ 1,00,000/- shall meet the ends of justice. - Appeal disposed of - E/474/2010 - A/10938/2016 - Dated:- 1-9-2016 - Dr. D.M. Misra, Member (Judicial) For Assessee : Shri Willingdon Christian, Advocate For Revenue : Shri N Satwani, Authorised Representative ORDER Heard both sides and perused the records. 2. This appeal is filed against OIO-31/VDR-II/JORD/WAG/COMMR/2009 dt 19/02/2010 passed by the Commissioner Central Excise, Customs and Service Tax, VADODARA-II. 3. The facts of the c .....

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nd cleared excisable goods on payment of duty of ₹ 1,21,06,867/- in execution of the first contract but failed to discharge duty of ₹ 1,80,33,487/- on the second part of the part. Consequently, they paid the said duty between 9th July, 2008 and 31st Feb. 2009. A notice was issued to them on 25.11.2009 for recovery of interest amounting to ₹ 17,56,742 under Section 11AB of Central Excise Act, 1944 and also proposal for penalty under Rue 25 of the Central Excise Rules 2002. On Ad .....

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er inspector at the end of M/s Essar Power Ltd., were returned to them for fabrication/assembly of Heat Exchanger (Super Heater) on job work basis as per the second stage contract. After carrying out necessary process, the appellant cleared the Heat Exchangers/Super Heaters without payment of any further duty under the impression that since the finished goods are manufactured out of the duty paid raw-materials supplied by M/s Essar Power Ltd and they were eligible to the benefit of exemption Not .....

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is contention that the show cause notice issued for recovery of interest is mostly barred by limitation being issued after one year from the payment of payment of duty therefore cannot be sustained. In support of his contention, the Ld Advocate referred to the decision of Hon ble Delhi High Court in the case of Hindustan insecticides Ltd Vs CC - 2013(299)ELT.332 (Tri Del.) Further, he has submitted that no penalty under Rule 25 of the Central Excise Rules imposable as any of the ingredients of t .....

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I find that first instalment against the duty liability was discharged by the appellant on 09.7.2008 and the final instalment was paid on 31.3.2009 against the total outstanding amount of ₹ 1,80,33,487/-. The Hon ble Delhi High Court in the case of Hindustan Insecticides Ltd (supra) observed that the recovery of interest should be made within the reasonable time ie., the period prescribed for recovery of duty under Section 11A of Central Excise Act, 1944. Hence, in the present case also t .....

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