2014 (8) TMI 533

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....nafter referred to as GSK). 2. For the purpose of manufacturing of Boost, the appellants were receiving raw-materials from M/s. GSK. The assessable value of the Boost being manufactured by them was based on the value of the raw-materials supplied by M/s. GSK, manufacturing cost and manufacturing profit, as per Ujagar Print formula laid down by the Hon'ble Supreme Court of India. 3. It is seen that M/s. GSK was adopting the cost of the raw-materials based on Rule 8 of the Valuation Rules and were discharging their duty liability accordingly. The cost of the production of raw-material by M/s. GSK was not known at the time of their removal, and their assessments were kept provisional were being finalised at the end of each financial ....

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.... confirmation of interest and imposition of penalties. 5. The impugned order stands assailed on the point of limitation, by submitting that the assessments were finalised in the year 2002-03 itself and the demand having been raised in the year 2005 is fully barred by limitation. 6. Commissioner, while dealing with the appellants' contention of the demand being barred by limitation, observed as under:-     "The Noticee further contents that the entire demand is time barred as all the material facts were in the knowledge of the department and the element of intent to evade payment of duty is missing in this case. In this connection, I note that I have discussed in detail in the foregoing paras as to how the Noticee....

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....finalisation of the provisional assessments has to be done by the Central Excise authorities and not by the appellants. It is also a fact that the Central Excise authorities having jurisdiction over the appellants' factory were keeping the assessments provisional in as much as the assessments at the end of M/s. GSK were provisional. They were aware of the said fact as also of the fact that the assessable value at the appellants' end has to be based upon the value of the raw-materials manufactured by M/s. GSK and supplied by them. As such, the entire facts were in the knowledge of the Revenue. As soon as the provisional assessments at the end of M/s. GSK were finalised, the Central Excise authorities having jurisdiction over the appe....