2015 (1) TMI 447

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....iable under Sub-heading No.2502.29 of CETA, 1985. During the course of manufacture of cement, slag is generated, which is classifiable under Sub-heading 2618.00 of CETA, 1985, but the said slag was sold as is where is basis to M/s ACC Ltd. A show-cause notice was issued on 09.12.2003 alleging short payment of duty on account of under-valuation of goods inasmuch as, they have not included railways freight, and also handling charges, paid by M/s ACC Ltd. to a third party namely, M/s Suraj Logistics, in the value of the slag for the period from December, 2002 to February, 2003. The Adjudicating Authority has dropped the demand relating to railways freight, but confirmed the demand of Rs. 4,11,032/- on handling charges ; also imposed equivalent....

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....lue of slag being not borne by them, however, as advised by the Department, they have paid the entire amount of duty and also later paid the interest. It is his submission that at the relevant point of time, the position of law was not clear, as to whether the handling charges paid to third party, would be included in the assessable value, when the product cleared from the factory, as is where is basis. He submitted that the said issue has been settled by the Larger Bench of this Tribunal in the case of Commr. of Central Excise, Mumbai III Vs. Supreme Petrochem Ltd. : 2009 (240) ELT 38 (Tri.-LB). It is his submission that as per the ratio of the said judgement and in view of the Contract between the Appellant and M/s ACC Ltd., the handling ....