2017 (1) TMI 217

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....r Appellant Shri N.N. Prabhudesai, Supdt. (A.R) for respondent Per : Ramesh Nair The issue involved in the present case is that in the event of non-inclusion of value of the free supply material by the customer in the manufactured excisable goods whether the penalty under Rule 25 of Central Excise Rules is leviable or otherwise. 2. The fact of the case is that the appellant have not in....

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....ppellant submits that the appellant was under bona fide belief that the value of the material supplied by the customer is not includible in the assessable value of the goods manufactured by them. Therefore no duty was paid on such material. He submits that there was no intention to avoid duty payment on the value of the goods supplied by the customer. Though the issue was debatable but the appella....

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....al Excise Act, 1944, which is reproduced below: "Section 11A(2B) in the Central Excise Act, 1944  [(2B) Where any duty or excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person, chargeable with the duty, may pay the amount of duty 71[on the basis of his own ascertainment of such duty or on the basis of duty ascertained by a Central ....

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....not paid or was short-levied or was short-paid or was erroneously refunded by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty. Explanation 2. -For the removal of doubts, it is hereby declared that the interest under section 11AB shall be paya....