TMI Blog2019 (3) TMI 2051X X X X Extracts X X X X X X X X Extracts X X X X ..... sis is only for fabrication charges which the appellant undertook on the duty paid chassis of the automobile. It is beyond comprehension as to how the value of the excisable product which has been manufactured by some other assessee / person and which is duty paid can be included in the aggregate value of the clearances of small scale industry manufacturer, which is only undertaking the fabrication work of body. Only fabrication charges of the body which have been built on the duty paid chassis need to be taken for determining the aggregate value of the clearance for the purpose of Notification No. 8/2003 dated 01 March, 2003 as that is the transaction value between the chassis supplier and the body building unit. Thus, the demand under the show cause notice and impugned order in appeal is legally not sustainable. Extended period of limitation - suppression of facts or not - HELD THAT:- The show cause notice was issued on 18 February, 2014 by invoking the extended time proviso under section 11 A of the Central Excise Act, 1944 by alleging that the appellant had indulged in fraud, suppression of facts, mis-representation with an intent to evade duty. None of these elements are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pproached the Commissioner (Appeals) against the above mentioned order-in-original. However, the Commissioner (Appeals) vide his Order-in-Appeal No. 51(NG)/CE/JPR/2018 dated 11 April, 2018 rejected the appeal of the appellant and thus, the charges as leveled in the show cause notice were confirmed upto the level of Commissioner (Appeals). 2. The learned advocate appearing for the appellant contended that the only issue to be decided in this case, is about the computation of aggregate value of clearances of the appellant firms namely whether the value of engine fitted chassis has to be included in the value of body building of the bus undertaken. It has been argued that for all the practical purposes, the value of any excisable goods means that assessable value of the goods as determined under section 4 of Central Excise Act, 1944. This section 4(1)(a) of Central Excise Act, 1944 reads as follows: Where under this act, the duty of excise is chargeable on any excisable goods with reference to their value, then on each removal of the goods, such value shall- (a) In a case where the goods are sold by the assessee, for delivery at the time and place of removal, assessee and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abrication charges, number of duty paid on automobile chassis received by the appellant and cleared after body building on the same etc. were duly recorded in the books of accounts and the officers have also taken note of the value of clearances pertaining to the financial years 2008-2009, 2009-2010 and 2010 -2011, but still they issued the show cause notice after several years on 18.02.2014 by invoking the extended time proviso under section 11A(1) of Central Excise Act, 1944 without adducing any evidence to the effect that the appellant had indulged in suppression of facts, mis-declaration or any other activity with an intention to evade payment of duty. 4. Learned advocate has submitted that the show cause notice in the present circumstances is barred by period of limitation and has cited several judgements in this regard. (i) SDL Auto Ltd. vs. Commissioner of Central Excise, Delhi [2013 (294) ELT 577 (Tri-Del)]; (ii) Taj Sats Air Catering Ltd. vs. Commissioner of Central Excise [2016 (334) ELT 680 (Tri-Del)]; (iii) Jubilant Organosys vs. Commissioner of Central Excise [2016 (342) ELT 449 (T)]; (iv) SMIEL vs. Commissioner of Central Excise, NOIDA [2016 (342) ELT 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value; (b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed. Explanation. For the removal of doubts, it is hereby declared that the price-cum-duty of the excisable goods sold by the assessee shall be the price actually paid to him for the goods sold and the money value of the additional consideration, if any, flowing directly or indirectly from the buyer to the assessee in connection with the sale of such goods, and such price-cum-duty, excluding sales tax and other taxes, if any, actually paid, shall be deemed to include the duty payable on such goods. It is apparent that the transaction between the appellant and the supplier of the duty paid Automobile chassis was on principal to principal basis and, therefore, the consideration charged for the body building by the appellant from the supplier of duty paid automobile chassis will constitute the transaction value for the purpose of valuation of excisable goods for the purpose of charging the duty of excise. 9. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een the appellant and its principal manufacture i.e. supplier of duty paid automobile chassis is only for fabrication charges which the appellant undertook on the duty paid chassis of the automobile. It is beyond comprehension as to how the value of the excisable product which has been manufactured by some other assessee / person and which is duty paid can be included in the aggregate value of the clearances of small scale industry manufacturer, which is only undertaking the fabrication work of body. Only fabrication charges of the body which have been built on the duty paid chassis need to be taken for determining the aggregate value of the clearance for the purpose of Notification No. 8/2003 dated 01 March, 2003 as that is the transaction value between the chassis supplier and the body building unit. Thus, the demand under the show cause notice and impugned order in appeal is legally not sustainable. 11. It is also a matter of record that all the transactions of the appellant pertaining to fabrication of bodies on various duty paid automobile chassis, find mention in their books of accounts and thus, same are duly accounted for. On the visit of the officers on 07 December, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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