2009 (9) TMI 852

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.... films ordered by each customer. Scrutiny of the assessee's records showed that during the period 4/2001 to 3/2004 VFP had raised debit notes on some of its customers and collected 'cylinder charges' to the tune of Rs. 43,11,997/-. Adjudicating a show cause notice issued to VFP, the original authority confirmed duty due of Rs. 6,89,920/- on the above Rs. 43,11,997/-, applicable interest and imposed equal amount of penalty u/s 11AC of the Central Excise Act (the Act) on VFP. Rs. 43,11,997/- was additional consideration received towards BOPP films sold. The impugned order affirmed the order of the original authority. 2. Relying on the following decisions of the tribunal, the assessee has argued that what was collected under debit notes was....

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.... 3. The Ld. Counsel for VFP reiterated the arguments in the appeal. The ld. JDR submits that the three identically worded undated certificates could not be accepted as pursuant to contracts. In the absence of contracts, the plea of liquidated damages was not valid. 4. We have carefully considered the records and the submissions by both sides. The Commissioner has noted as follows in the 2nd paragraph of the impugned order. "2. The statement of the Managing Director of the appellants was also recorded who confirmed that they raise the debit notes subsequent to the date of raising sales invoice on which duty is paid and further that the debit notes relate to the cost of the cylinders. He also confirmed that the value of such cylinders w....