2009 (10) TMI 725

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....he Respondent. ORDER This appeal filed by the assessee is against a demand of duty, interest and penalty. 2. The assessee had supplied 'bottom rail' for Material-Handling Machinery to Bharat Heavy Electricals Limited (BHEL), Kanpur after procuring the material under commercial invoice from an unregistered dealer. When the goods were cleared to BHEL, duty of Rs. 3,41,261/- (including Educa....

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....ority confirmed the demand against the assessee and appropriated the amounts of Rs. 70,538/- and Rs. 1,411/- towards such demand. It also imposed a penalty of Rs. 2,69,311/- on the assessee under Section 11AC. Interest on duty was demanded under Section 11AB. An appeal filed by the assessee against the Assistant Commissioner's order was rejected by the Commissioner (Appeals). Hence the present app....

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....al's decision in Gurjar Gravures Pvt. Ltd. v. Commissioner of Central Excise, 2007 (220) E.L.T. 522 (Tri. - Ahmd.) 5. After giving careful consideration to the submissions, I find that the assessee has claimed equitable relief's rather than statutory, at this stage. It is not in dispute that they supplied bottom rails, on payment of duty, to BHEL. Subsequently, when the material was found defec....

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....f the duty paid of the bottom rails supplied to BHEL and subsequently returned by the buyer, and having apparently utilised such credit for payment of duty on excisable products, the assessees is estopped from arguing that they were not liable to pay duty on the material on the ground that the supply to BHEL was only a trading activity. Consequently, the applicability of Rule 16(2) of the Central ....