TMI Blog2018 (10) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Section 14A of Central Excise Act, 1944 which deals with special audits - in the present case, the decision of Hon’ble Apex Court in case of Frick India Ltd. does not help the case of Revenue. Moreover the excise duty is a tax on manufacture of goods. Mere purchase and supply of bought out goods with excisable cannot make them liable to excise. There could have been a possibility of demanding tax on the full machine manufactured at buyers premises, however, the present proceedings cannot succeed on that also on grounds of lack of jurisdiction. Appeal dismissed - decided against Revenue. - Appeal No. E/1-2,120-121/2010-DB - A/12097-12100/2018 - Dated:- 8-10-2018 - MR. RAMESH NAIR, MEMBER (JUDICIAL) And MR. RAJU, MEMBER (TEC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the Commissioner (Appeals) has set aside the part of the demand without giving any finding on the decision of Hon ble Apex Court namely, Frick India Ltd 2007 216 ELT 497 (SC) and M/s Narne Tulaman Manufacturers Pvt. Ltd 1988 (38) ELT 566 (SC), relied by Revenue. 6. We have gone through rival submission, we find that the Commissioner (Appeals) has in para 1.8 of his order examined the decision of Hon ble Apex Court Frick India Ltd (Supra). In the case of Frick India Ltd (Supra) Hon ble Apex Court observed as under: 6. However, we find merit in these civil appeals filed by the Department on the question of valuation. As stated above, the concept of classification is different from the concept of valuation . In the present ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deals with special audits in certain cases . In our view, in the present matter costing as a concept will play an important role and, therefore, if the Commissioner so deems fit he can order special audits and call for the report of the cost accountant to assist him (Commissioner) to arrive at the correct value of the entire package cleared by the assessee from its factory gate. It is apparent on the Hon ble Apex Court directed inclusion of the value of bought out items for the purpose of assessment. Hon ble Apex Court merely remanded the matter for re-determination of value from the point of value addition and possibility of invocation of Section 14A of Central Excise Act, 1944 which deals with special audits. In view of above dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demands on such manufactured machines. 8. At the outset we would like to record that the appellant having not contested duty liability in respect of warping machine, we uphold the duty liability on the clearances of warping machine. At the same time, we find merits in the argument of the Ld. Counsel that the demand of the duty needs to be reworked as amounts received by the appellant for such warping machines have to be considered as cum duty price and demand of duty needs to be recalculated. We also hold that appellant is liable to pay interest on the amount of duty in respect of warping machine. Since there is clearance of warping machine with payment of duty appellant is liable to penalized under Section 11AC of Central Excise Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... informed the Department about the purchase of various parts which are required for erection / assembling of sizing machine at their customer s premises. 11. The said correspondence clearly demonstrate that the appellant had not suppressed any facts from the Department; we are of considered view that there cannot be any demand by invoking extended period of limitation, in respect of demands on manufacturing of sizing machine. 12. On jurisdiction point and also on limitation, the appellant has made a strong case for setting aside the duty on sizing machines. Since we have set aside the demand of duty on sizing machine, we set aside the penalties imposed on this count on assessee as well as partner. That we have upheld the demand ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
