Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2018 (1) TMI 262

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... iod of limitation - Held that: - the respondents were filing their RT 12 returns regularly and maintaining statutory records - the activity of selling brass scrap at a lower price than the value shown in the balance sheet was well known to the department - extended period not invocable. Appeal dismissed - decided against Revenue. - Appeal No.E/1583/2007 - Final Order No.60001/2018 - Dated:- 1-1-2018 - Mr.Archana Wadhwa, Member (Judicial) And Mr. Devender Singh, Member (Technical) For the Appellant : Shri G.M.Sharma, AR For the Respondent : Shri Somesh Arora, Advocate ORDER Per : Archana Wadhwa Being aggrieved with the order of by the Commissioner (Appeals) vide which charge of undervaluation stands dropped by .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... re of same final product, as the brass scrap generated was of same quality and kind as the final product of the respondent and the price of brass scrap on average basis found to be ₹ 77.50, ₹ 82.75 and ₹ 79.50 per kg. As the price of brass scrap determined and applied by M/s.Hindustan Wires, the assessable value ascertained and on the basis of that, the assessable value by the respondent was ascertained. Based on this calculation, the show cause notice was issued to the respondent on 20.3.2002 by invoking the extended period of limitation, for recovery of duty alongwith interest and for imposition of penalty for the period from 1.4.1997 to 28.2.2002 on account of undervaluation of brass scrap. The matter was adjudicated, d .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... at circumstance, he prays that the impugned order is to be set aside and the order of adjudication is to be affirmed. 7. On the other hand learned Counsel for the respondent opposed the contention of the learned AR and submits that it is an admitted fact that the respondent has cleared the brass scrap on payment of duty to the job worker and job worker after doing the job work has sent the entire goods to be used in the manufacturing of their final products on payment of duty on the market value of the said goods to the respondent. As the respondent has suffered duty on full value of the goods, therefore, there is no revenue loss to the department and in that circumstance, the charge of undervaluation is not sustainable. He further submi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of brass scarp ₹ 50.00 per kg (b) Conversion charges ₹ 14.00 per kg (c) Purchase price of job worked goodsi.e. brass rod: ₹ 100 per kg (d) Price of brass scrap shown in the Balance sheet excluding duty ₹ 86.00 per kg For example, the respondent cleared the brass @ ₹ 50/- per kg on payment of duty and job charges ₹ 14/- per kg, in that circumstance, the job worker is required to clear the goods to the respondent @ ₹ 64/- per kg and the duty is to be paid on ₹ 64/- per kg not on ₹ 100/- per kg. But if the brass is cleared @ ₹ 86 per kg, then the job worker is required to pay duty on ₹ 10 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tation is not invokable and on this count also, the demand pertained to the extended period of limitation is not sustainable. 10. As we have discussed on merits itself, the respondent has suffered duty on the finished goods, the job charges are not disputed by the revenue and all the brass scrap sent to the job worker have been received by the respondent after conversion into the brass rods, in that circumstance, it is situation of revenue neutrality. As the respondent has suffered duty on the finished goods i.e. brass rods, therefore, there is no infirmity in the impugned order and the same is upheld. Consequently, the appeal filed by the Revenue deserves no merits and hence the same is dismissed. (Pronounced in the open court on 01 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates