2006 (10) TMI 284

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....ad installed a new Carding Machine valued at Rs. 13,27,036/- to improve the quality of the final product i.e cigarette filter rods, supplied to M/s. VST Industries, Hyderabad. The appellant had availed Modvat credit and had capitalized the value of the Carding machine, 50% of the cost of the machine viz. Rs. 6,10,056/- was paid by M/s. VST Industries to the appellant. It is the contention of the Revenue that the above amount is an additional consideration and is liable to be charged to duty @ 16% ad valorem. Aggrieved by the decision of the original authority, the appellants approached the Commissioner (Appeals). The Commissioner (Appeals) upheld the OIO and rejected the appeal. Aggrieved over the impugned order, the appellants have come be....

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....ed as charity, the same is not includible as per the following decisions :- (a) Premier Mills Ltd. - 1997 (92) E.L.T. 662. (b) Pasupathi Acrylon Ltd. - 1998 (102) E.L.T. A152. (iv)   When the duty has been paid before the issue of Show Cause Notice (Duty has been paid on 10-7-2000 and the Show Cause Notice has been issued on 16-8-2001), no penalty under Section 11AC and interest under Section 11AB can be levied as held by the following decisions: 1.       Vora Associates - 2006 (198) E.L.T. A174 (SC) 2.       Rashtriya Ispat Nigam - 2004 (163) E.L.T. A53 (S.C.) - 2003 (161) E.L.T. 285 (Tri.-Bangalore) 3.       Gaurav Mercant....

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....(a)      National Leather Clothing Mfg. Co. - 2006 (198) E.L.T. 400 (Tri.-Mumbai) (b)      Amco Batteries Ltd. - 2006 (2) S.T.R. 346 (Tri.-Bang.) (c)      N.K. Modi & Co. - 2006 (2) S.T.R. 78 (Tri.-Kolkata) (vii)  The Supreme Court has upheld the decisions held by the Tribunal in the case of Koluthara Electronic - 2003 (158) E.L.T. 368 and dismissed the Departmental appeals in its order - 2005 (179) E.L.T. A151 (S.C.). 5. The learned JDR reiterated the impugned order. 6. We have gone through the records of the case carefully. The appellants have stated that M/s. VST Industries financed 50% of the cost of the carding machine to help the a....