2008 (1) TMI 78

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....stomers on door delivery basis. Their Head office of had an umbrella insurance cover in respect of movement of all their goods from any location to any other location. The movements of air-conditioners from the factory premises to the customers' destination got automatically covered by this umbrella insurance policy. b. On the basis of investigation, show cause notice dated 21-12-2001 was issued and the commissioner by his order dated 10-11-2003 held that the purchase orders were received from their customers directly at their factory; possession of goods were transferred to the buyers only at the buyers' premises; hence no transfer of possession of goods have taken place at the factory gate; the sale price from the depots were found to ....

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....e invoices. c. Demand is also barred by limitation, as i. there was no mis-declaration, as demands are based on direct sales to customers, for which no declaration was ever filed; the declarations filed under rule 173C was in respect of sale through depots/branches, which is not the subject matter of the show cause notice. ii. Declarations, marketing pattern as well as copies of invoices [in which deductions were claimed] were submitted to the department from time to time. Hence there was no suppression of any material fact to the department. d. As the extended period of limitation cannot be invoked penalty u/s 11AC is not attracted. e. Even in respect of sales from depots/branches, whenever the actual sale was effected at pr....