TMI Blog2017 (2) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... s) Rules, 2000. Extended period of limitation - Held that: - the assessee-Appellants have suppressed the material facts from the Department by not disclosing in their monthly ER-1 Return that they are indulged in the institutional sale by clearing of the Toilet Soap manufactured in their factory for “free distribution” alongwith the other product u/s 4 of the Central Excise Act, 1944 - extended period rightly invoked. Appeal dismissed - decided against appellant-assessee. - E/541 of 2010 - A/50031/2017-EX[DB] - Dated:- 5-1-2017 - Mr. (Dr.) Satish Chandra, President And Mr. Ashok K. Arya, Member (Technical) (Rep by Sh. Hemant Bajaj, Adv.) Appellant (Rep. by Sh. Yogesh Agarwal, DR) Respondent Per Mr. (Dr.) Satish Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the value shall be one hundred and ten percent of the cost of production or manufacture of such goods. Since the goods are not sold, Section 4(1)(a) will not apply, so the recourse will have to be given to the Valuation Rules. Except Rule 8, all the other Rules cover contingencies where sale is involved in some form or the other. Hence, we are of the view that Rule 8 of the Valuation Rules, 2000 was correctly applied by the lower authorities for the valuation of the goods distributed as free sample alongwith their own products. 5. In the instant case, after clearing the goods i.e. Soap to the sister concern, no further activity was done on the same and the said goods were not used in the production or manufacture of other art ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lls, 2008 (221) ELT 333 (Bom) 7. After hearing the rival submissions, it appears that the assessee-Appellants have suppressed the material facts from the Department by not disclosing in their monthly ER-1 Return that they are indulged in the institutional sale by clearing of the Toilet Soap manufactured in their factory for free distribution alongwith the other product under Section 4 of the Central Excise Act, 1944. It was came to the notice only when the records were audited by the Central Excise Internal Audit. This clearly indicates that the assessee-Appellants have short paid duty of ₹ 1,66,763/- during the period September, 2006 to December, 2006 on account of free sample for own use which is recoverable from them under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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