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TMI Blog2017 (5) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 and today. On all occasions, none appeared on behalf of the appellant nor is there any request for adjournment has been received, despite notice. As this appeal pertains to the year 2008 i.e. more than 7 years has been passed, therefore, the appeal is taken up for disposal on its own merit. 3. The brief facts of the case are that the appellant is engaged in the manufacture of metal rolling mills and parts thereof. During the visit of the Central Excise officers to the factory on 14.2.2006, it was found that in few cases the appellants had cleared the goods without including the value of material supplied free of cost to them by their buyers on returnable store challans. The appellants had received certain parts free of cost from their bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to all excisable goods, produced or manufactured by a unit when supplied to the units in special economic zones, from whole of duty of excise subject to the condition that such goods are removed from the factory or warehouse, as the case may be, in accordance with the procedure specified in Rule 11 of the Central Excise Rules, 2002. Accordingly the show cause notice was issued to the appellants which was adjudicated, the demands on account of undervaluation as well as denied the benefit of Notification No.58/03-CE dated 22.7.2003 were confirmed along with interest and penalty was also imposed on them. Aggrieved from the said order, the appellants preferred an appeal before the Commissioner (Appeals) who confirmed the demand and dropped the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gate of such transaction value and the amount of money value of any additional consideration following directly or indirectly from the buyers to the assessee. Further, Explanation I to Rule 6 of the Rules, ibid, states that value, apportioned as appropriate, of value of materials, components, parts and similar items relatable to such goods, whether supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale of such goods, to the extent that such value has not been included in the price actually paid or payable, shall be treated to be the amount of money value of additional consideration flowing directly or indirectly form the buyer to the assessee in relation to the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final product manufacturer, whereas, in the present case the appellants were not the job worker of said M/s.Jindal Stainless Steel Limited, Hissar (the buyer), as the said buyers had paced the purchase orders on the appellants for the supply of machinery and the free supply of components/parts was made by the buyers to the appellants consequent to the terms and condition of the said purchase orders. In the present case, the duty discharged at the stage of the appellants was the final duty paid on the impugned goods and it is not the case here that the buyers (i.e. M/s.Jindal Stainless Steel Limited) had discharged the duty on the said goods by adding the value of the components/parts supplied by them free of cost to the appellants. As per v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants and hence the extended period of limitation is rightly invokable. I do not find any legal infirmity so far as confirmation of demand of Rs. 8,31,667/- and imposition of equal amount of penalty under section 11AC of the Central Excise Act, 1944 are concerned. 6. We have gone through the said observations of the Commissioner (Appeals) and held that the value of free supply of raw material made by the buyers to the appellants are not required to be added in the assessable value of the goods, therefore, we do not find any infirmity in the impugned order. Accordingly, the impugned order on the issue No.1 is upheld. Issue No.2. 7. We find that it is admitted fact that the appellant has cleared the inputs as such, and availed Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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