2009 (1) TMI 707

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.... OIA No. 381 & 382/2006 (V-l) CE dated 11-12-2006 Rs. 71,84,763/-Rs. 48,88,102/- 1-1-1999 -31-5-2000 1-4-1991 - 30-9-2002 Rs. 12,25,000/- 2. As all these appeals involve a common question of law and fact, we are taking up them together for disposal. 3. We heard both sides. 4. The appellants are engaged in the manufacture of High Carbon Ferro Chrome (HCFC), an excisable commodity, at their factory at Kothavalasa, Vizianagaram District, Andhra Pradesh. They cleared certain goods to their sister units on the basis of the cost of production. Initially, the goods were assessed on the basis of provisional assessment but while finalizing the value of goods for payment of duty, it has been contended by the learned advocate that the department has ignored the cost analysis certificate issued by the qualified Cost Accountant and unilaterally demanded duty on extraneous items of cost not attributable to the cost of production in any manner. The appellants appealed to the Commissioner (A) who has confirmed the duty demand in all these impugned orders. The elements of expenditure included by the Commissioner (A) are (1) Gratuity; (2) Selling and Packing Expe....

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....t year. (e)  Interest determined to Jindal Strips Ltd., Hisar. The Commissioner (Appeals) had upheld the addition of element of interest, which is neither claimed nor paid by their unit at Hisar. The figure, which is not even finding its place in the balance sheet, is adopted from the MIS statements prepared by the appellants. The figure only denotes the additional cost incurred by 1-lisar unit by arranging early payment to the appellants as against 60 days credit allowed by any other supplier. This data is prepared for the limited purpose of arriving at the comparative cost, cost benefit loss resulted in manufacturing operations for own use. It may be appreciated that such statements made as part of the MIS cannot be deemed as expenditure, since the entries ledgers! balance sheet alone reflect the costs incurred and not the statements developed in Management Information Systems. (f)  Charity and Donations : These expenses form part of the head office expenses and are attributable to sale promotion expenses, which are not relevant to the cost of production, of the goods at the factory. 4.1 Further, it was pleaded that the entire exercise is revenue neutral, ....

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....  1-9-2000 to 30-11-2000 6311.760           Value           duty @16%                     1-12-2000 to 31-3-2001 3263.820           Value           duty@16%             2. 36/2003 dt. 30-10-2003 06/2006(V-I) (D) date : 28-2-2006 E/873/2006 1-6-2000 to 30-6-2000 2541.99           Value           duty @ 16%             3. 39/2003 dt. 30-10-2003 (De-Novo) 382/2006 (V-I) (CE) dt. 11-12-2006 E/329/2007 1-1-1999 to 27-2-99 5215.18           Value           duty @ 15%           Io         28-2-99 to 31-3-99 5595.33           Value           Duty @ 16%     &n....

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....bsp;   26092.211 22045.13 25352 29746   85160280.11   82744037 97085589.72   13625644.82   13239046 15533694.36             25583.36 22045.13 25352 26533.65 HIGHER VALUE BUT NO REFUND IS CLAIMED NOW IN VIEW OF "UNJUST 3,86,446 65032645.29   64444275 67448272.96   10405223.25   10311084 10791723.67             23111.69 18297.79 21042 25352.89 7184763 120531607   109740209 132219907   18079741   17558433 21155185             24077.70 18297.79 21042 25352.92   134722682   117739499 141857945   21555629.12   18838320 22697271             24293.70 20245.52 23282 26422.83   172383963   165207583 187491876   27581434   26433213 29998700             25770.54 20245.52 23282 26....