TMI Blog2017 (10) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... lso for the reason that clearances of the subject goods to independent buyers and DTA units are undisputedly made on payment of duty, the allegation that the activity does not amount to manufacture when very same goods are cleared to 100% EOU is not justified. Extended period of limitation - Held that: - there is no evidence to establish any suppression of facts or willful mis-statement with intent to evade payment of duty on the part of the respondent - the demand invoking the extended period is unsustainable. The respondent has vehemently argued to award damages basing upon the CBEC Circular F. No.390/CESTAT/69/2014-JC dated 22.12.2015 for awarding cost to the respondent as the respondent has been dragged to frivolous litigation by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Control Systems, Pondichery and silencers supplied by M/s. Nelson Engine Systems India Ltd., Daman, AC generator was removed as such and the same was supplied by M/s. Newage Electrical India Ltd. Ahmed Nagar. Further, industrial engine with standard accessories and radiator supplied by M/s. Ashok Leyland Limited, Hosur, were also removed. The AC generator-in-frame supplied by Kirloskar Electric Company Ltd. Pondicherry and M M engine and kit-for-engine supplied by Mahendra and Mahendra Ltd. Mumbai were removed on invoices. That therefore these goods having been removed as such to the EOU, the respondent is not eligible for the benefit of Notification No. 22/2003. That except alternators and battery all other components are removed as such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further, for the period June 2006 to March 2007, vide Order-in-Original No. 36/2008 dated 23.6.2008, the department had dropped the proceedings on the ground that the respondent is undertaking manufacturing activity in the premises. On merits, he submitted that the respondent manufactured base frames fitted with engine or alternators and these were cleared not only to 100% EOU but also to DTA unit on payment of duty on the transaction value. All the process carried out in their factory i.e. manufacture of base frame out of CRCA sheets of mild steel and mounting of alternators or engines with base frames are manufacturing activities. He laid thrust on the fact that the department has taken the clearance of such goods made to DTA on payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discussions made by the Commissioner (Appeals), the department has taken contradictory stand with respect to the subject goods cleared by the respondent. Commissioner (Appeals) has summarized same in page 5 by the following Table:- Name of Customers Mode of Clearance Departments stance Independent buyers On payment of duty on transaction value Status as manufacturer accepted Their own DTA units For captive consumption Status as manufacturer accepted payment of duty on 110% of production value demanded EOU Units Clearance a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he factory amounted to manufacture and also for the reason that clearances of the subject goods to independent buyers and DTA units are undisputedly made on payment of duty, the allegation that the activity does not amount to manufacture when very same goods are cleared to 100% EOU is not justified. We also fully agree with the findings of the Commissioner (Appeals) that the demand is hit by limitation. The respondent has been regularly filing ER-1 returns and subject goods have been cleared to 100% EOU on CT3 certificate. There has been communications from the respondent to the department on the said issue. Therefore, there is no evidence to establish any suppression of facts or willful mis-statement with intent to evade payment of duty on ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
