2018 (2) TMI 777

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....ri B. Balamurugan, AC (AR) ORDER Per: Bench The brief facts of the case are that the appellants are engaged in the manufacture of parts of motor vehicles such as Deck Lid handle, Radiator Grill assembly etc., falling under Central Excise Tariff Act, 1985. The plastic moulded parts manufactured at the appellant's Unit-I & Il, Pune are transferred to Unit-Ill situated at Chennai on payment of....

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....unds' based on which excess Cenvat credit has been availed by the appellants. Hence, a show cause notice was issued to the appellants to confirm and appropriate the differential duty and Cenvat credit paid/reversed, besides demanding interest under section 11AB of the Central Excise Act, 1944 and imposition of penalty under section 11AC of the Act and Rule 25 and 15 of the Cenvat Credit Rules,....

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....semblies, which were issued free of cost by M/s. FIL, in the assessable value of the said parts manufactured by them. Department has also alleged that their Unit-I has inputs valued at Rs. 110/- instead of the actual value of Rs. 80/- to Unit-Ill to enable the Unit-III to avail excess credit amounting to Rs. 94,727/-. The differential duty involved is Rs. 12,33,320/- on this issue. 5. Ld. Advocat....

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....ls issued free of cost by M/s. FIL. Nonetheless, it clearly emerges that their gaffe was only on account of procedural misunderstanding and misinterpretation of law. There is no allegation that appellants had been indulging in clandestine removal of goods without payment of duty. The differential duty liability has only arisen because of non-inclusion of money value of free issue materials. From t....