Bona fide disclosure requirements govern under-reporting penalties, and post-penalty immunity applications cannot secure available statutory protectio...
Certificate-of-origin verification procedure governs preferential customs benefits; denial without retroactive verification was set aside with consequ...
Disciplinary Committee jurisdiction and mandatory investigation requirements invalidated cancellation of an insolvency professional's registration and...
Retention of seized property survives where recorded reasons support proceeds of crime, while stayed investigation periods are excluded from limitatio...
The appellant manufactured and sold Draw Texturizing Machines, which were cleared in parts as it was not feasible to transport the entire machine in one truck. The appellant followed the prescribed procedure under Trade Notice No.MP/29/83 and intimated the jurisdictional Central Excise department. As the machinery could not be cleared assembled, the appellant was obligated to assemble and install the machine at the buyer's premises. The contract was undisputedly for the sale of the machine, and no separate service was involved. The appellant was registered with the Central Excise department, discharging excise duty and filing periodic returns. The appellant did not charge any amount towards service, and the total value, including erection charges, was billed for the manufacture and sale of the machine. The appellant intimated the department about the piecemeal supply as per the Trade Notice and disclosed that the machines would be assembled and erected at the customer's site. Therefore, there was no suppression of facts with intent to evade duty payment. Consequently, the extended period for demand was wrongly invoked, rendering the demand time-barred. The impugned orders were set aside, and the appeal was allowed.
The appellant manufactured and sold Draw Texturizing Machines, which were cleared in parts as it was not feasible to transport the entire machine in one truck. The appellant followed the prescribed procedure under Trade Notice No.MP/29/83 and intimated the jurisdictional Central Excise department. As the machinery could not be cleared assembled, the appellant was obligated to assemble and install the machine at the buyer's premises. The contract was undisputedly for the sale of the machine, and no separate service was involved. The appellant was registered with the Central Excise department, discharging excise duty and filing periodic returns. The appellant did not charge any amount towards service, and the total value, including erection charges, was billed for the manufacture and sale of the machine. The appellant intimated the department about the piecemeal supply as per the Trade Notice and disclosed that the machines would be assembled and erected at the customer's site. Therefore, there was no suppression of facts with intent to evade duty payment. Consequently, the extended period for demand was wrongly invoked, rendering the demand time-barred. The impugned orders were set aside, and the appeal was allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4809 
Join Channel 
