2013 (8) TMI 59

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....hem. It was further revealed that M/s Eicher Motors Limited had supplied one design to the appellant for development of a part according to which they manufactured 187 nos. Cap Brg. LCV Set Mono Block and 293 nos. Cap Brg. HCV set Mono Block. However, later on M/s Eicher Motors Limited declined the delivery of the goods due to change in the design of the said port. Since the goods manufactured, as per specific directions, were not fit for consumption by any other vehicle manufacturer, the appellant had no other alternative but to sell the same as scrap. The appellant further explained that on account of such change in the design, they had incurred some loss, which was compensated by the company against debit note doted 07.10,2008. Since the....

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.... interest and also imposed equivalent amount of penalty. Aggrieved by such an order, an appeal was preferred before the first appellate authority. The first appellate authority after granting an opportunity of personal hearing, upheld the order in original before him and rejected the appeal filed by the assessee. 5. Ld. counsel would submit and draw my attention towards the facts of the case. He would submit that the appellant had, from 15.01.08 agreed with the purchaser for supply of the goods manufactured by them on FOR terms which could mean that the appellant is responsible for the delivery of the finished goods at the purchasers doorstep. For this purpose he would draw my attention to the e-mail which has been sent by the purchas....

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....service tax on the GTA services for outward transportation charges. 10. I find that on perusal of the specimen purchase orders which were produced before me that the said purchase orders categorically indicate that the goods are to be supplied by the appellant at the purchasers doorstep on FOR terms. LRs which were also produced along with the specimen sample also indicate of door delivery to the purchasers of the goods. The invoice which has been raised by the appellant indicate specifically the purchase orders and the terms therein mentioned. In light of such a factual matrix, I have to hold that the appellant had contracted for delivery of the goods manufactured by him to the purchasers doorstep of the purchasers. If that be so, t....