TaxTMI 
TaxTMI 
2007 (7) TMI 54
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion of interest. (b) Prior to acceptance by the buyers, the escalation claims were mere claims. Lodging of a claim itself did not confer any right to receive the amount. (c) Under Sections 11A and 11AB interest was payable only from the first day of the month succeeding the month in which duty ought to have been paid and thus the liability for interest could arise only if duty was not paid after acceptance of claims by the buyers. This was not the position in the present case. (d) In the present case, the undisputed factual position is that in the same month in which the escalation claim was accepted by the buyers, escalation bills were raised and differential duty was also paid. Thus, there was no delay at all (submissions recorded in P....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ob workers should not have included the value of old cylinders (Page 80/I). This reason is totally untenable and contrary to law. (c) Whether the activities of job workers amounted to manufacture and whether they were liable to pay duty and what was to be the assessable value were matters to be decided by Central Excise Authorities having jurisdiction over job workers and Commissioner in the Appellant's case had no jurisdiction. The Appellant was fully entitled to take credit of the entire duties actually paid by the job workers. (d) Appellant's submissions on this issue have been recorded in Para B/Page 61 of Volume I. The Commissioner, however, has rejected the submissions in Para B/Page 79 of Volume I by holding that the duties paid by....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 369 (Brown Kraft Inds. Ltd. v. CCE). 4. Issue No. 4: Cenvat Credit of Rs. 3,63,639/- on Debit Notes raised for "deduct ion under purchase". This is similar to Issue No. 3 above. 5. issue No. 5 : Cenvat Credit of Rs. 2,66,887/- and Education Cess of Rs. 1,588/- on Debit Notes under the head "other deductions". This is similar to Issue No. 3 above. 6. Issue No. 6 : Cenvat Credit of Rs. 4,01,476/- and Education Cess of Rs. 5,442/- on Debit Notes under I he head "External Processing Charges": (a) These Debit Notes were on account of rejection, wastage and other reasons and were raised on job workers for deductions from job charges for the deficiencies/inferior quality of job works. (b) Debit Notes raised on the job workers did not have ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... done by them. 13 Debit Notes related to non-excisable goods. None of the said Debit Notes had any effect of any nature on any assessable value or duty payment. (b) The Commissioner has recorded the submissions by has wrongly rejected the same by holding that these were not backed by any law provision (Page 88/I). (c) 23 Debit Notes were raised on the Appellant's buyer M/s. Hindustan Lever Limited. These Debit Notes were raised on various accounts, such as, wastage incurred for initial run, expenses for trial run, excess wastage incurred etc. and were not for any consideration for sale of goods. Inspite of this and since at this distant point of time, it was not becoming possible to co relate each of the said Debit Notes, duty of Rs. 89,1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uys printing ink from DIC India Limited n principal to principal basis. Due to shortage of workers at the said depot of DIC India Limited, for handling, loading etc. of the materials supplied to the Appellant, it deputed four workers to the depot of DIC India Limited and on this account the Appellant charged from them a sum of Rs. 17,000/- per month. These Debit Notes had nothing to do with any payment of duty or availment of any Cenvat Credit." 2. The ld. Sr. Advocate also pleads the grounds of limitation and states that the appellants have always maintained all the statutory records and have filed return from time to time. Their Unit was also audited by the Excise Authorities and hence the larger period of limitation is not applicable, s....