2009 (11) TMI 772

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.... under sub-heading 8301.00 and 8708.00 of the Tariff, respectively. The appellant during the period from 17-6-2000 to 30-6-2000 and 1-7-2000 to 31-3-2000 transferred certain quantity of the parts of "latch locking system" from Plant I to Plant II on payment of duty on the cost of production, while according to Department during 17-6-2000 - 30-6-2000 period, duty should have been paid on the cost of production plus profit margin and during 1-7-2000 - 31-3-2003 period, duty should have been paid on 115% of the cost of production. It is on this basis that a show cause notice dated 9-6-03 was issued for demand of differential duty amounting to Rs. 17067/- alongwith interest, and imposition of penalty under Section 11AC. The show cause notice wa....

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....of Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975, duty was required to be paid on cost of production plus profit margin, which the Appellant would have normally earned, and during period, w.e.f. 1-7-2000 duty on such goods cleared for captive consumption, in terms of the provisions of Rule 8 of the Central Excise Valuation Rules, 2000 was required to be paid on 115% of the cost of production, and thus, as such there was short payment of duty as the same had been paid only on the cost of production. However, on going through the records we find that only normal limitation period, was available to the Department for recovery of short paid duty and there was no basis for invoking extended period under proviso to Section 11A(1) and ....