TaxTMI 
TaxTMI 
2017 (3) TMI 991
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.... goods has also been denied and penalties have been imposed under Section 11AC of the Central Excise Act, 1944. Aggrieved by the said order, the appellants are before Tribunal. 2. Learned Counsel for the appellant argued that the appellants have factory at three places - Jalgaon, Chakan and Gurgaon. The Gurgaon factory is engaged in supply of brake assembly to M/s Maruti Udyog Ltd. (MUL). The Gurgaon factory procures Tandem Master Cylinder from the Jalgaon factory and Booster assembly from the Chakan factory for manufacturing the brake assembly to be sold to MUL. For the purpose of clearance of goods Jalgaon and Chakan factory to Gurgaon factory, the duty is paid on cost of production of goods manufactured in the respective factories. For ....
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.... appellants paid Rs. 36,38,683/- being differential duty on total amount of differential customs duty and interest paid and borne by MUL on account of non-fulfillment of export obligation. The said amount was amortized in respect of clearance of Booster assembly made by the appellant during the period 10.04.2002 to 28.02.2003 to their Gurgaon factory. The Commissioner of Central Excise issued a show-cause notice proposing to deny credit of Rs. 25,21,414/- taken in respect of the capital goods and demand of duty of Rs. 36,38,683/- as duty on the total amount of differential customs duty and interest paid by MUL to Customs in respect of import of said machine. 2.3 The credit was sought to be denied on the ground that the invoices issued by M....
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....of the following goods and services, whether supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale of such goods, to the extent that such value has not been included in the price actually paid or payable, shall be treated to be the amount of money value of additional consideration flowing directly or indirectly from the buyer to the assessee in relation to sale of the goods being valued and aggregated accordingly, namely : - (i) value of materials, components, parts and similar items relatable to such goods; (ii) value of tools, dies, moulds, drawings, blue prints, technical maps and charts and similar items used in the production of such goods; (iii) value of....
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....fill export obligation and consequently become liable to pay additional differential duties. In these circumstances, it cannot be said that MUL has paid the said duty and the interest on behalf of the appellants. Only in the circumstances that MUL had paid anything on behalf of the appellant which would have constituted the additional consideration. Since MUL has paid the said differential duty as its own liability and not as the liability of the appellant, it cannot be considered as an additional consideration in any manner. The assessment at the material time was done in terms of Rule 8 of the Central Excise Valuation Rules, 2000 and in terms of Rule 8 the appellant had included the cost of the said machine in the form of leased rentals i....
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.... Jalgaon. The matter was examined by Tribunal in the said case and Tribunal observed as follows:- "2. Another ground in the order of the lower authorities for disallowing the credit is that the value of the goods depreciated to about Rs. 10 lakhs. Learned Counsel for the appellant brings it to our notice that the provision for depreciation is not relevant for the reason that they have taken credit only of the amount as duty and paid by the MUL that supplementary invoice has been held by the Tribunal to be valid document for the purpose of the availment of the credit. Over and above this, there is a certificate from MUL on the basis which credit was taken and said certificate has been issued by the Asstt. Commissioner. On the point of delay....
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....ding to the CBEC Circular No. 199/33/96-CX dated 23.4.1996also there is no time limit for taking CENVAT Credit on capital goods. It is also noticed that the appellants have not claimed any depreciation on the capital goods. The appellants have also stated that the capital goods are still in use in their factory. I am, therefore, of the opinion that the appeal filed by the appellants is sustainable." 5.1 We find that apart from the grounds raised in the said proceedings, in the instant case following four grounds were also raised in this proceedings: - "(i) No declaration has been filed under erstwhile Rule 57T. (ii) MUL was never in possession of the capital goods and hence it could not have issued such an invoice. (iii) The appellants ....