2003 (12) TMI 371

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....yer, M/s. Hyundai Motor India Ltd. supplied the appellant certain parts. The value of these free supply items was also required to be added in the cost of other materials and cost of production to arrive at the full price of the Exhaust System. Appellant was making the said addition also. It is submitted that in January, 2002 appellant felt that the value taken by them for the free supply items was erroneous. Accordingly, they wrote to the Superintendent, Central Excise, Chennai on 2nd January, 2002 intimating that they had adopted a "Standard Price initially" and by oversight, the variation of cost was overlooked. This letter also pointed out that "variation is on both sides namely resulting in a higher value and in some cases a decrease i....

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....m correctly in the value of Exhaust System. It is also pointed out that this had been found out by the appellants themselves and they had made payment before any proceedings were initiated by the Excise authorities. It is also being pointed out that a charge of intent to evade duty cannot arise in the present case at all inasmuch as whatever duty was paid by the appellant was available as credit in the hands of M/s. Hyundai Motors India Ltd. who used the item as original equipment in the manufacture of cars. Appellants have also submitted that their case is covered by the decision of the Supreme Court in the case of AMCO Batteries Ltd. v. C.C.E., Bangalore - 2003 (153) E.L.T. 7 (S.C.). Specific reliance has been made on the observations of ....

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....emsp;In the present case also, there is no material on record from which it could be inferred or established that duty of excise was not levied or paid by reason of any fraud, collusion or any wilful misstatement or suppression of facts, or contravention of any of the provisions of the Act or the Rules made thereunder with intent to evade payment of duty. It was a bona fide belief on the part of the appellant scrap and waste, which was recovered while manufacturing batteries, was exempt from levy of excise duty. Further, appellant was entitled to get benefit of Modvat scheme, therefore, there was no justifiable reason for the appellant to suppress any fact." 4. Apart from the above the submissions on the aspect of time-bar, the cont....

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....articulars about the visit or detection of the short-levy are available from the record of the case. Neither the show cause notice nor he adjudication order mentions the date of visit of the Audit party. Nor is any reference made to audit objection raised. Thus, this finding is not supported by any material on record. 7. That apart, the fact remains that the error made by the appellant was both ways, resulting in higher valuation in some cases and lower valuation in some other cases. The appellant had no gain in the matter also inasmuch as whatever duty was paid by them was being reimbursed to them by M/s. Hyundai Motors India Ltd. and duty paid by the appellant was available as credit to the appellant's buyer. Therefore, appellant'....