2023 (9) TMI 8

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....ant is registered as SSI unit and engaged in the manufacture of conveyor and transmission belting, classified under T.I. 40103999/40103992 of the 1st schedule to the Central Excise Tariff Act, 1985. The appellant manufactured the goods in terms of the orders received from various public sector customers including M.P. Power Generating Co. Ltd. for supply of 8000 meters conveyor Belts at Barkakana during 2007-08 as per the terms of purchase orders. 3. Audit was conducted on 21 & 22.01.2009 and it was found by the audit party that the appellant has charged the packaging and forwarding charges separately on invoices @ Rs. 22/- and Rs. 67.05/- per meter in case of F.O.R Supply of 8000 and 1400 meters conveyor belt to M/s Satpura Thermal Power ....

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....ppellant is an SSI unit and has been supplying the impugned goods to only public sector units as per the purchase order furnished by the public sector units. He further submitted that as per the audit, the appellant had short paid Rs. 44,473/- which was paid under protest at the insistence of range officer. He further submitted that surprisingly show cause notice was issued invoking the extended period of limitation whereas he has been regularly filing the ER-I returns and it was scrutinized by range officer and no objection was raised by the range officer regarding under valuation of the impugned goods. He also submitted that in the show cause notice, there is no whisper about violation of Section 11AC but in the Order-in-Original, the ori....

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....nded the duty of Rs. 1,88,597/- along with interest and penalty. We also find that in the show cause notice, there was no proposal for imposition of penalty under Section 11AC but when the Order-in-Original was passed even the equal penalty under Section 11AC was imposed which is beyond the show cause notice, hence, not sustainable in law. Further, we find that the show cause notice was issued on 09.11.2010 which was received by the appellant on 16.11.2010 for the period pertaining to 2007-08 by invoking the extended period of limitation without the ingredients present as required under Section 11A(4). Further, we find that the appellant has regularly been filing the ER-1 returns which was scrutinized by the department and the department ne....