TaxTMI 
TaxTMI 
2018 (7) TMI 1205
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....o.6406 of Central Excise Tariff; during audit by Central Excise Officers on 26/27.09.2013, it was observed that appellants received advance payment for developing the moulds which are used for manufacture of heels; the said amount of advance received was shown separately under the head other income and no excise duty was being paid on the same; auditors observed that the appellants were liable for payment of duty at the rate at which duty was payable on manufacture and sale of goods. The appellants, in reply, contended that they were under the belief that charges for developing the moulds are in the nature of service and in view of taxation on the basis of negative list, appellant already started paying service tax with effect from 01.04.20....
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....ntral Excise revenue account is independent of Service Tax revenue account and therefore, the question of adjustment already paid towards Central Excise duty does not arise. 5. The learned Counsel for the appellants argued that in the present case there is no dispute on liability for payment of Central Excise duty; that on being pointed out they immediately agreed for payment of the same; that they were under the bonafide belief that the amount received towards mould developing charges are in the nature of service and were liable for payment of Service Tax; that even before the audit pointed out, they had already started paying service tax. He further submitted that his only claim is that the amount of service tax already paid by them that....