2005 (1) TMI 700

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....ndent : L. Narasimha Murthy ORDER Dr. S. L. Peeran (Judicial Member) This appeal arises from OIA No. 82/2003 dated 28.11.2003 by which the Commissioner (Appeals) has confirmed the OIO confirming the duty demand of Rs. 2,12,721/- and like sum as penalty besides a penalty of Rs. 5000/- in terms of Rule 173Q. The appellants are manufacturers of Sugar confectionery on job work basis for M/s. ....

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....sion method. They had stated that due to fluctuations in prices of raw materials, it would be difficult to ascertain the actual cost of the materials consumed for a given period in advance in view of the frequent fluctuations in the prices of raw materials like sugar and glucose. Therefore, for the purpose of provisional assessments based on the cost sheets, they had adopted higher prices for basi....

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....her than the actual cost. They contended that the alleged short payment of duty for the relevant period as stated in the Show cause Notice is not correct and requires modification. They also pointed out that there was no suppression of facts as the assessments had been completed from time to time. The show Cause Notice has been issued on 12.3.1999 for the period 4.10.1995 to 30.11.1997 and hence i....

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....eir letter dated 4.10.1995, they had specifically indicated that due to fluctuations in the prices of raw materials, the actual cost can be arrived at finally when the accounts are closed at the year end. We also notice that the Show Cause Notices issued from time to time covering the initial period October 1995 to November, 1997 requiring them to pay duty by including the element of modvat credit....