2020 (1) TMI 192

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....their sale price to their customer. The Customer is supplying Free of Cost Paper, Aluminium Sleeve printed with buyers production details to the appellant. The appellant supplying Biscuit Cone duly packed in the said sleeve. 2. The case of the department is that the sleeve which is packing material supplied by the customer to the appellant the cost thereof needs to be included in the Transaction Value and duty should be charged on the said value. Accordingly, a Show Cause Notice dated 03.05.2008 was issued for the period April, 2003 to March,2007 invoking extended period. The Adjudicating Authority confirmed the demand on merit as well as on limitation therefore, present appeal is filed. 3. Shri Deven Parekh, Senior Counsel with Shri ....

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.... period is beyond the normal period of One year. As regard time bar we find that the appellant have been filing their declaration under Rule 173(b) & 173(c) of erstwhile Central Excise Rules, 1944. On perusal of the declaration filed under rules 173(c) we find that in one of the question, the appellant have answered us as under:- FOR SALE TO INDUSTRIAL CONSUMERS:- (i)................   (ii) Are you using any Input/Raw Material/Component Parts/Accessories etc. supplied free of Cost by your buyer? If so, details may be Supplied including its impact on the assessable value.: Laminated paper sleeves and are supplied to us free of cost by customer for packing cones supplied to them. There is no impact on assessable valu....

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....ior Counsel on behalf of he appellant, we have examined the facts. We find that the issue involved in the present case is based on strict interpretation of Section 4 of Central Excise Act, 1944 and rules made there under. There are various judgments on this issue therefore, it cannot be said the appellant have never suppressed any fact as regard non-inclusion of the Cost of corrugated box supplied Free of Cost by their buyer for the reason that this facts was noticed by the Audit Officer from the records which was existing at the time of Audit. It is also observed that the appellant have made a specific declaration about the fact that they are receiving corrugated cartons Free of Cost from their customers. It is also mentioned in the declar....