2016 (6) TMI 1176

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....al) Mr. Anil G. Shakkarwar, Member (Technical) Shri Puneet Bansal & Shri Prateek Jain, Advocates for the Appellant (s) Shri V.R. Reddy, Asstt. Commissioner (A.R.) for the Department ORDER The issue in these appeals, filed by the manufacturers appellants manufacturing parts of Data Projector, PU, Interface, Populated PCB etc., a 100% EOU, relates to leviability of SAD under Section 3(5)....

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....transferring the goods to the non-bonded area from where the appellants are undertaking service activity to cater to AMC customers. Infact, there is no sale of goods from the non-bonded area, yet the appellants are discharging Sales Tax/VAT liability on full value even though zero value invoice is raised on the AMC customers. An internal audit of the unit of the appellants was conducted during the....

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.... penalty under Section 11 AC of the Act. The SCN was adjudicated on contest and reduced the amount of Rs. 32,16,453 was confirmed with interest along with equal amount of penalty under Section 11 AC of the Act. Further a penalty of Rs. 10 lakh each under Rule 26 of Central Excise Rules, 2002 was imposed on Mr. Rakesh Kumar Vohra, Managing Director and Mr. Manish Gaur, Manager Commercial of Barco E....

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....nd it have been decided in their favour by coordinate Bench of this Tribunal, being Final Order No.53815-53817/2014 dated 09.09.2014 in Appeal No. 59749-59751/2013- EX [DB], wherein considering the same issue for the period January, 2011 to October, 2011. It has been held that whenever there is inter unit transfer, it is not a sales transaction and hence sales tax/CST/VAT does not get attracted. I....