TaxTMI 
TaxTMI 
2014 (11) TMI 921
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.... certificate issued by the Deputy Commissioner or District Magistrate of the district in which the project is located is produced to the jurisdictional Deputy or Assistant Commissioner of Central Excise to the effect that such goods are cleared for the specified intended use. 19-2-2004 Certificate from relevant authorities obtained. November, 2003 to 19-2-2004 Pipes cleared on payment of central excise duty. 20-2-2004 to August, 2004 Pipes cleared without payment of central excise duty by availing exemption under Notification No. 03/2004-C.E., dated 8-1-2004. I Earlier proceedings 2-12-2004 Show cause notice proposing to reassess value of pipes sold by PSL to L&T on the ground that L&T had purchased HR Coils at a basic price much higher than Rs. 15,000/- per metre and sold the HR Coils at a lower price of Rs. 15,000/- to PSL and thus the difference in price of HR Coils has resulted in undervaluation of pipes sold by PSL to L&T; that this difference amount is an additional consideration in the hands of PSL under Rule 6 of Valuation Rules. 31-3-2005 Order-in-Original No. 60/2004-05, dated 31-3-2005 passed by the Additional Comm....
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....ortation, charges for lowering, laying, etc. of pipes during 1-11-2003 to 19-2-2004. * Demand of duty of Rs. 11,26,22,845/- under Section 11D(2) on bare and coated pipes sold to L&T, collected from L&T as excise duty but not deposited with Government during 20-2-2004 to August, 2004 on the ground that the excise duty collected from L&T but not paid to Government on the basis of comparison of ledger account of L&T in the books of PSL. 3. Order-in- Original No. 10/2011, dated 28-2-2011 * Principle of res judicata not applicable as appellants have not appealed against order-in-original No. 34/2005, dated 20-3-2006. * Demand of Rs. 3,18,68,213/- and Rs. 2,07,01,159/- not mutually exclusive as it is a case of job work and therefore formula prescribed under Ujagar Prints to be applied. * Manufacture of pipes undertaken on job work basis and there is no sale of pipes. * Consideration received for laying and jointing includable in assessable value as it is 'in connection with' or 'by reason of' pipes being sold by the appellants. * Transportation charges to be included in assessable value as place of removal is the site and not the factory ....
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....ll and the reference of the assessee as well as the consolidated account maintained by L&T are based on records only and the bill raised as per L&T account has been seen by both the sides. Even 3 to 4 bills were referred to, in our opinion it would be sufficient if we consider the reply relating to paragraphs U1 to U3 of the show cause notice. We consider it appropriate that the same have to be reproduced : (III) DEMAND OF Rs. 11.26,22,845 IS NOT MAINTAINABLE. Show cause notice had erred in ignoring the deductions/recoveries portion. U.1 We have raised periodical running bills on L&T in relation to the Work Order dated 10-7-2003. The gross amount of bill raised by us was in accordance with the Work Order dated 10-7-2003 read with subsequent exemption which cam into play w.e.f. 20-2-2004. In other words, we did not raise bill towards excise duty on pipes once exemption was claimed on pipes cleared 20-2-2004 onwards. Certain deductions are made from the gross amount of bill raised by us on account of monies already received or monies due by us to L&T. These deductions are in the nature of set-offs. Summary of the 8 running bills and one bill for additional scope of work read ....
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....re = Rs. 34.53 crore. U.3 The show cause notice has compared the gross bill figures of these two types of bills namely running bill and piece rate bill. The gross amount as per running bill is Rs. 147.58 crore, whereas the gross amount as per piece rate bill is Rs. 158.95 crore. As per show cause notice, the difference i.e., Rs. 158.95 crore - Rs. 147.58 crore = Rs. 11.37 crore (actually Rs. 11.26 crore) represents amount collected as excise duty from L&T on pipes cleared on 20-2-2004 onwards. The only ground for coming to the conclusion that the appellants have collected an amount of Rs. 11,26,22,845/- as central excise duty has been considered by the Commissioner in Para 58 which is reproduced below : "58. The other allegation made in the notice is that the PSL has made deductions to the extent of Rs. 112,54,57,948/- instead of Rs. 124,41,36,948/- which are the actual deductions as per the Final Contract Bill No. 11. By this it is implied that PSL has not paid/credited to L&T the amount to the tune of Rs. 11,86,79,000/- and retained with them. This amount pertains to the amount of Rs. 11,26,22,845/- (10,36,23,674/- + 89,99,171/-), the amount collected as central exci....