TMI Blog2005 (7) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... lopment charges but the Board Circular had not been examined. In view of the Board Circular the matter has to go back to the Original authority for amortizing the cost in terms of the certificate to be produced from the cost accountant. We are of the considered opinion that the aspect pertaining to time limit and time-bar is required to be re-examined in the light of the submissions made by the appellants and recorded in this order. The appellants had immediately paid the amount before the issue of show cause notice but that by itself will not justify confirmation of demand without examining all the pleas raised by the assessee. The appellant have cited several judgments to show that there was no suppression of facts and the show cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice and the same has been adjusted in the impugned order. They are challenging the confirmation of demands on time-bar. It is their contention that the officers had visited the factory of the appellants on 19 21 of March, 97 and carried out the investigation. They collected all the details and no show cause notice was issued for more than three years. There was no fraud or collusion or misstatement. The allegation was that they have received charges for development of castings done by them and had not included the said cost in the assessable value. It is stated that they had suppressed this fact and only investigation revealed the same. However these amounts were paid on being pointed out even before the issue of show cause no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HA 4, HA 3, HA 6 and RV 3). Therefore, they contend that the demand of duty of Rs. 3 crores without establishing that the amortized money value for each casting as per subsequent orders cleared without a specific finding that such prices in these individual clearances depressed because of supply of design and developed casting. Hence the impugned Order is not proper in law. It is stated that the Commissioner has not applied his mind to understand the nature of article and failed to note the weight and price of castings. In invoice No. 9720404, dated 18-10-96, the RV-3 crank case were supplied to M/s. KOEL at the rate of Rs. 39.12 per kg whereas under invoice No. 9720138, dated 16-10-96, M M transmission case was supplied at Rs. 32.18 per k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Development charges has not gone into the cost of patterns and the duty could have been demanded on the excisable goods which were manufactured from these patterns developed by the appellant for manufacture of castings. It is contended that the department had neither ascertained the number of castings which could have been manufactured from the patterns for which development charges were recovered nor the excisable goods which could be manufactured from such patterns was worked out or called for from the appellants. Therefore the duty cannot be directly demanded on the development charges as these are not excisable goods. He placed reliance on the Tribunal ruling rendered in the case of Ashok Iron Works Ltd. v. CCE [2004 (168) E.L.T. 198] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has force. The duty cannot be directly charged on the development charges. In terms of the Board Circular, the amount is required to be amortized and duty worked out. After procuring a certificate from the cost accountant. Although in the case of Ashok Iron Works, the Bench had allowed the appeal solely on the basis that duty cannot be demanded directly on development charges but the Board Circular had not been examined. In view of the Board Circular the matter has to go back to the Original authority for amortizing the cost in terms of the certificate to be produced from the cost accountant. We are of the considered opinion that the aspect pertaining to time limit and time-bar is required to be re-examined in the light of the submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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