Tribunal ruling on excisable goods value inclusion and Cenvat Credit dispute

The Tribunal upheld the inclusion of the value of free supplied goods in the assessable value of excisable goods and sustained the demand for the extended period. The benefit of cum-duty price deduction was also affirmed. However, the Tribunal ruled in favor of the appellant regarding Cenvat Credit on endorsed invoices, setting aside the demand, interest, and penalty. The penalty imposed on the director was overturned. The company's appeal was partly allowed, while the director's appeal was fully allowed. The decision was issued on 01.02.2019.

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Issues involved:
1. Inclusion of value of free supplied goods in assessable value of excisable goods.
2. Availability of cum-duty value benefit for free supplied goods.
3. Sustainability of demand for extended period.
4. Entitlement for Cenvat Credit on endorsed invoices.

Analysis:
1. The issue of whether the value of free supplied goods should be added to the assessable value of excisable goods is acknowledged to be legally includable. The appellant concedes the inclusion but argues against the sustainability of the demand for the extended period due to lack of suppression of facts. The benefit of cum-duty price is sought, which would reduce the duty liability.

2. The appellant contends that the director of the company, not well-versed in legal provisions, should not be penalized for the interpretation of valuation provisions. Regarding Cenvat Credit availed on endorsed invoices, the appellant argues for allowance, citing legal admissibility based on endorsed invoices used in the manufacturing process.

3. The Revenue reiterates the inclusion of cost of free supplied goods in the assessable value, with no dispute raised by the appellant. The Revenue argues against the deduction of cum-duty price, citing a precedent upheld by the Supreme Court. The limitation period is deemed justified due to non-disclosure of the use of free supplied material by the appellant.

4. The Tribunal finds the inclusion of value of free supplied goods in the assessable value to be sustainable. The demand for the extended period and cum-duty price deduction are upheld based on legal precedents. However, regarding Cenvat Credit on endorsed invoices, the Tribunal rules in favor of the appellant, setting aside the demand, interest, and penalty. The penalty imposed on the director is also overturned, considering the technical nature of the issue.

5. Ultimately, the appeal of the company is partly allowed, while the appeal filed by the director is fully allowed. The decision was pronounced in open court on 01.02.2019.

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