TMI Blog2000 (11) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... hin Ltd. being aggrieved with the Order-in-Original No. 38/98, dated 31-12-98, passed by the Commissioner Excise, Delhi-III, confirming the demand of Rs. 55,91,225/- and imposing a penalty of equal amount under Section 11AC of the Central Excise Act, holding that the cost of the component, received by them free of cost and used in the manufacture of final product, should be included in the assessa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown that the Revenue neutral situation comes about in relation to the credit available to the assessee himself and not by way of availability of credit to the buyer of the assessee's manufactured goods; (d) We express our opinion in favour of the view taken in the case of M/s. International Auto Products (P) Ltd. (supra) and endorse the proposition that once an assessee has chosen to pay duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of limitation is upheld. 4.Shri Madhav Rao, ld. Advocate, submitted that the Appellate Tribunal, in the case of Escorts JCB Ltd. v. C.C.E. New Delhi, 2000 (118) E.L.T. 650 (T) = 1999 (35) RLT 9 (CEGAT) has held that "the limit fixed therein (Section 11AC of the Act) is the maximum limit and it is not mandatory that in all cases maximum should be imposed as penalty. Authority is having a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly the amount of penalty was reduced; that in the case of Escorts JCB, supra, there was only misdeclaration and fact of insurance was suppressed and no other benefit was derived by the manufacturer; that in Agriculture Equipment case, the penalty was reduced taking into consideration the entire facts and circumstances of the case and the co-operation extended by the appellants to the authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the cost of such items was not to be taken into account. They have also paid the entire duty involved on 8-9-1997, on being informed of the position by the Department. Thus following the ratio of the decisions relied upon by the learned Advocate for the appellants, we are of the view that ends of justice will meet if the appellants are ordered to pay a penalty of Rs. 30 lakhs only. We order a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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