2013 (11) TMI 1344

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....h of the Applicant Nos.(2) & (3), S/Shri Pratap Narayan Ghosh and Rudra Narayan Ghosh. 2. At the outset, the ld. Consultant for the Applicants has submitted that during the period from 2005-06 to 2009-10, the Applicant Firm had manufactured Parucco heater and Parucco air-heating system. A demand notice was issued to them alleging that they had failed to discharge the duty on Parucco air-heating system and also wrongly availed the SSI benefit under Notification No.8/2003 dated 01.03.2003 (as amended), even though they had affixed the brand name, Parucco, on their products. The ld. Consultant at the outset, submitted that the air-heating system did not come into existence in their factory, but after assembly at site only, Parucco air-heating....

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.... he has submitted that even though in the impugned Order at page 206, it has been mentioned that the total duty paid by them during the period from 2005-06 to 2009-10 was Rs.1,31,38,813/, but, in fact during that period, they had actually paid a total amount of Rs.1,41,21,407/- which is evident from the certificate issued by the Range Superintendent dated 29.07.13. 3. Ld. AR for the Revenue reiterates the findings of the ld. Commissioner. The ld. AR brought to our notice a statement furnished by the Director on 13.07.2009 whereby, on a specific question by the Revenue, the Director's answer was that all bought-out items that were brought into the factory were essential parts of air heaters, which were their own manufactured items, and henc....

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....s essential parts of a complete air-heater. The Applicant Company did not make payment of duty on such accessories claiming that these accessories after being fitted with the duty-paid air heaters, air-heating system came into existence at the site. Therefore, the air-heating system is non-excisable/non-dutiable. On a quick glance at the table mentioned at page 32 of the impugned Order, we find that while arriving at the duty-liability, the ld. Commissioner had added the value of air heaters shown in the invoices to that of the bought-out items cleared along with it, and the assessable value was re-determined accordingly. The Revenue has claimed that these accessories are essential parts of air heaters, whereas the counter-claim advanced on....