2017 (6) TMI 887

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....ly availing the price escalation clause agreed with their customer and pay excise duty on such amounts received. The Department conducted the audit of the accounts of the appellant for the year 2006-07 and 2007-08 and verified their Profit and Loss statement and found that the appellant had shown a sales value of Rs. 2,28,03,204/- for the year 2006-07 whereas the total of the assessable value plus the total duty as per the ER1 returns filed by the appellant came to Rs. 2,00,90,397/- only. The appellant had admitted that they have received an amount of Rs. 25,40,034/- from M/s. KSEB as price variation. The appellant had neither intimated the Department about the receipt of the said amount on account of price variation nor shown the receipt o....

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.... any provision in the Central Excise Rules which mandates the assessee to intimate the Central Excise department about the receipt of additional consideration received under supplementary invoices. He further submitted that the appellants have shown the entire record to the department and has not concealed anything. He further submitted that since the appellant had paid the duty along with interest, the department should not have issued the show-cause notice and imposed the penalty under Section 11AC. 5. On the other hand, the learned AR defended the impugned order and submitted that the appellant deliberately concealed the information from the department. He further submitted that the amounts were received by the appellant as price vari....