2006 (5) TMI 267

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....nt. Shri Gregory, Jt. CDR, for the Respondent. [Order per : P.G. Chacko, Member (J)].  During the material period, the appellants were engaged in the manufacture of Steel Bars and Rods (Chapter 72 of the CETA Schedule). They also manufactured these goods on job work basis. During April to July 1997, they manufactured CTD Bars on job work basis out of input supplied by their sister co....

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....of the sister concern. This demand was contested on merits as well as on limitation. The original authority and the first appellate authority rejected the assessee's plea and confirmed the demand of differential duty amounting to Rs. 4,48,515/-. They also imposed a penalty of equal amount on the assessee. 2. Ld. Counsel, having perused the Supreme Court's judgment in CCE, Indore v. S. Kuma....

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.... Prints-III. It is submitted that nothing was suppressed by the assessee so as to warrant invocation of larger period of limitation. These submissions are opposed by the Jt. CDR, who submits that neither the relationship nor the fact that the depot prices of the sister concern were higher than the prices adopted by the assessee was disclosed to the department. It was only during the investigative ....

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....ses like the present one, the principles enunciated in the case of Empire Industries Ltd. v. UOI [1985 (20) E.L.T. 179 (S.C.)] and Ujagar Prints-II incorporating arms length principle would be applicable. The decision in Empire Industries (supra) and Ujagar Prints-II [1988 (38) E.L.T. 535 (S.C.)] were known to the assessee during the entire period of dispute. We, therefore, reject the Counsel's, p....