2006 (7) TMI 71

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Screen Development Charges (SDC). (ii)    Non-inclusion of freight charges in assessable value. (iii)   Non-inclusion of packing charges in assessable value. The lower authority passed an order confirming Rs. 8,28,402/- being the duty short paid. Further, he imposed a penalty of Rs. 8,28,402/-under Section 11AC of the Central Excise Act, 1944. Interest under Section 11AB was also imposed. An amount of Rs. 42,411/- towards freight and an amount of Rs. 20,424/- towards packing charges had already been paid by the appellants. These amounts were adjusted by the lower authority in his order. The appellants approached the Commissioner (Appeals). The Commissioner (Appeals) upheld the order of the lower author....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the following factual position. Period Debit note amount as verified by the Department and included in the Annexure to the SCN (Rs.) Amount for which the credit note are raised during this period. (As per Annexure VIII) (Rs.) 1-7-98 to 10-12-98 2,97,068/- 52,500/- 1-3-2001 to 31-3-2001 1500/- — 1-4-2001 to 31-3-2002 10,44,650/- 21,000/- 1-4-2002 to 31-3-2003 33,27,157,/- 45,06,020/- TOTAL 46,70,375/- 45,79,520/- (iv)   The chain of events leading to the raising of debit notes and credit notes is as follows :-The customer will give small piece of cloth containing the design of art work which is required by him for printing. The appellant will develop the design as re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent from December, 2001 when the Audit visited the appellants' unit. But the Show Cause Notice has been issued on 6-8-2003 after a lapse of 20 months and, therefore, the demand for the period up to 6-8-2002 is hit by limitation of time. The following case-law was relied on :- Needle Industries (India) Limited - 1997 (89) E.L.T. 131 (Tri.) (vii)  Where the demand is barred by limitation, no penalty under Section 11AC can be imposed. The duty on account of freight and packing charges was paid much before the issue of Show Cause Notice. Therefore, no penalty can be levied under Section 11AC in view of a large number of decisions. (i) Machino Montell (I) Ltd. - 2004 (168) E.L.T. 466 Tri.-Del (LB). (ii) Shree Krishna Pipe Indust....