https://www.taxtmi.com/caselaws?id=110108 Where duty on escalation charges under turnkey contracts was paid only after final settlement, the absence of suppression of relevant facts prevented invocation of penal and interest consequences. The contract contained an escalation clause, and the authorities were not shown to have been kept unaware of the arrangement; on those facts, non-payment at factory clearance was not treated as suppression. Provisional assessment was identified as the proper course where liability on the escalated value arose later. Accordingly, penalty under Section 11AC and interest under Section 11AB were not sustainable, and the penalty under Rule 209A of the Central Excise Rules, 1944 also could not stand. en-us Tue, 25 Nov 2003 00:00:00 +0530 Fri, 13 Apr 2012 17:31:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110108 Where duty on escalation charges under turnkey contracts was paid only after final settlement, the absence of suppression of relevant facts prevented invocation of penal and interest consequences. The contract contained an escalation clause, and the authorities were not shown to have been kept unaware of the arrangement; on those facts, non-payment at factory clearance was not treated as suppression. Provisional assessment was identified as the proper course where liability on the escalated value arose later. Accordingly, penalty under Section 11AC and interest under Section 11AB were not sustainable, and the penalty under Rule 209A of the Central Excise Rules, 1944 also could not stand. Case-Laws Central Excise Tue, 25 Nov 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110108