2015 (2) TMI 423

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....of dispute were enjoying partial sales tax exemption under the scheme of the State of Haryana under which while they could collect full sales tax payable on the goods from the customers, they were required to pay only 50% of that tax to the State Government and could retain the remaining 50% with them in lieu of capital subsidy. The Department was of the view that the amount of Sales Tax which was retained by the appellant was includible in assessable value of the goods and its deduction for the purpose of determining transaction value under section 4 was not permissible. It is on this basis that a Show Cause Notice, dated 08.06.2007 was issued to the appellant for demand of differential duty of Rs. 72,23,683/- alongwith interest thereon un....

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.... on a totally different ground i.e. explanation to section 4(1) of the Central Excise Act, 1944, while the Show Cause Notice proposed recovery of duty on a totally different ground and as such the Commissioner while confirming the demand has travelled beyond the scope of the Show Cause Notice which is not permissible, that the appellant have a strong prima facie case in their favour and hence the requirement of pre-deposit of the duty demand, interest and penalty may be waived for hearing of the appeal and recovery thereof be stayed. 3. Shri R.K. Grover, the Ld. DR, opposed the stay application by reiterating the findings of the Commissioner in the impugned orderand pleaded that as is clear from the Show Cause Notice, the duty has been d....