2018 (12) TMI 716

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....However Commissioner (Appeal) has reduced the penalty imposed to Rs. 10,000/-. The order of adjudicating authority is reproduced below: "(i) Under the provisions of Section 11A of the Central Excise Act, 1944, I confirm the demand of Central Excise duty of Rs. 1318365/- in respect of five show cause notices against M/s Shogini Techno Arts Pvt Ltd, situated at Gat No 755-756, Khed Shivapur, Tal Haveli Dist. Pune as detailed below. Sl No Show cause notice F No and date of SCN Period Involved Total Differential Value (Rs) Duty amount involved (Rs) 1 F No P-II/ SCN/Shogini/03 dated 06.02.09 1.1.08 to 29.02.08 9,38,935 1,54,736.55 2 F No P-II/ SCN/Shogini/03 dated 19.03.09 1.3.08 to 31.07.08 22,65,583....

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....m either developed by themselves or supplied by their customers free of cost. When the design/ art work/ photo film is developed by them they recover the charges incurred towards such development over and above the cost of PCB from their customers. These charges recovered separately are part of the assessable value for computing the central duty payable in respect of such PCB's 2.2 In cases where the design/ art work/ photo film is supplied free of cost by their customer, the charges/ cost of such design/ art work/ photo film is not amortized for inclusion in the assessable value of the PCB's for the purpose of payment of duty. 2.3 In respect of the cases where the design/ art work/ photo film was supplied free of cost by the customer....

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....ment has not challenged the correctness of such valuation but have demanded duty on certain arbitrary value. Demand based on such tentative value cannot be sustained. (iii) Reliance on the Cost accountant Certificate for ascertainment of value of design/ art work/ photo film prepared by the appellants themselves for determination of value of design/ art work/ photo film supplied by the customers is not justified. (iv) The normal price concept as applied by the authorities below is not applicable for the valuation after 1st June 2000. (v) Penalty imposed on them is not justified, when there was no proposal for the same in Show Cause, and penalty could not have been imposed without confiscation of the goods. 4.0 We have heard Shri....