2007 (3) TMI 618

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....ave filed applications for settlement in respect of the proceedings initiated vide SCN C.No. V(15)OFF/MP/ADJ/27/06 dated 28-3-2006 issued by the Joint Commissioner, Central Excise, Kanpur. 2. The brief facts are that the applicants are engaged in the manufacture of ultramarine blue falling under Chapter No. 32 of the First Schedule to the Central Excise Tariff Act, 1985. They are availing the benefits of SSI exemption. Based on certain intelligence that the applicants were misusing the benefits of the SSI exemption notification, a search was conducted in the factory premises of the applicant. The search and subsequent investigation revealed that the applicant had cleared goods clandestinely and had also indulged in suppression of va....

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....ut invoices.  The sale prices totally comprising of Rs. 40,82,992/- for the purposes of computation of the duty on suppressed values and of Rs. 28,96,990/- for the goods cleared clandestinely were taken in the SCN from the applicant's private record/general ledger. Since, such prices were the total money realization for the said transactions and no extra amount was received, they should be regarded as cum-duty-value and consequently, the correct total duty liability against them gets reduced to Rs. 9,56,258/- which has since been fully paid by them. Accordingly, the advocate requested that immunities from interest, penalty and prosecution may be granted to both the applicants. 5. Shri K.K. Pandey, Superintendent representing Re....

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.... and realization by way of actual sale price, it is not possible to know the final value/price realized on such goods, to consider them as cum-duty-price. In the circumstances, Hon'ble Supreme Court's Judgment in the case of Maruti Udyog Ltd. is not applicable to this case and the request for abatement is not sustainable. 7. In view of the above and keeping in mind the cooperation extended by the applicants in the settlement proceedings, the Bench settles the application finally under Section 32F(7) of the Act on the following terms and conditions : (a)     The amount of duty liability is settles at Rs. 11,09,259/-. The amount of Rs. 9,56,258/- deposited by the applicant is appropriated towards the said liabil....