TaxTMI 
TaxTMI 
2019 (3) TMI 2051
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....mounting to Rs. 26,52,031/- during the period August, 2009 to February, 2011 was alleged to have been evaded by the appellant. A show cause notice dated 18 February, 2014 came to be issued whereunder the above mentioned amount of central excise duty has been demanded by invoking the extended time proviso under section 11A(1) of the Central Excise Act, 1944. Interest as per the provisions of section 11AB/ 11AA of Central Excise Act, 1944 has also been invoked and penal provisions of section 11AC of Central Excise Act, 1944 have also been invoked. The matter was adjudicated vide the Order-in-Original No. V(H) ADJ-I/CE/84-87/80-2012 dated 28.9.2015 whereunder the learned adjudicating authority confirmed all the charges alleged in the impugned show cause notice. The appellant approached the Commissioner (Appeals) against the above mentioned order-in-original. However, the Commissioner (Appeals) vide his Order-in-Appeal No. 51(NG)/CE/JPR/2018 dated 11 April, 2018 rejected the appeal of the appellant and thus, the charges as leveled in the show cause notice were confirmed upto the level of Commissioner (Appeals). 2. The learned advocate appearing for the appellant contend....
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....hassis and, therefore, for calculation of the aggregate value of clearances as per the requirement of Notification No. 8/2003 dated 01 March, 2003 has to be the value charged by the manufacturer for "body building on the chassis". The learned advocate has also argued that the entire demand is barred by limitation as the Departmental officers initially were of the view that only fabrication charges of body building was to be taken for determining the aggregate value of the clearances in a particular financial year for determination of benefit under Notification No. 8/2003. The Departmental officers visited the factory of the appellant on 07.12. 2011 when all the figures concerning the aggregate value of the clearances were provided to their officers and every fact regarding the fabrication charges, number of duty paid on automobile chassis received by the appellant and cleared after body building on the same etc. were duly recorded in the books of accounts and the officers have also taken note of the value of clearances pertaining to the financial years 2008-2009, 2009-2010 and 2010 -2011, but still they issued the show cause notice after several years on 18.02.2014 by inv....
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....ion is "whether the value of duty paid engine fitted chassis supplied by owner of chassis for manufacture / fabrication of body on such chassis has to be included for determining aggregate value of clearance" for the purpose of Notification No. 8/2003 dated 01 March, 2003. 8. In this regard, it would be relevant to have a look at the legal provisions under Central Excise Act pertaining to the above issue. SECTION 4. Valuation of excisable goods for purposes of charging of duty of excise. - (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall - (a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value; (b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed. Explanation. - For the removal of doubts, it is hereby declared that the price-cum-duty of the excisable goods sold by the assessee shall be the pr....
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....d goods; (d) ... (e) clearances, which are exempt from the whole of the excise duty leviable thereon under notifications No. 214/86-Central excise, dated the 25th March, 1986 [G.S.R. 547 (E), dated the 25th March, 1986], or No. 83/94-Central Excise dated the 11th April, 1994 [G.S.R. 375 (E) dated the 11th April, 1994], or No. 84/94 Central Excise, dated the 11th April, 1994 [G.S.R. 376 (E) dated the 11th April, 1994]" 10. It can be seen that for determination of aggregate value of clearances of all excisable goods for home consumption, the transaction value of clearance of excisable goods needs to be taken while determining the eligibility of particular SSI manufacturer for the purpose of Notification No. 8/2003. We are of the view that the transaction between the appellant and its principal manufacture i.e. supplier of duty paid automobile chassis is only for fabrication charges which the appellant undertook on the duty paid chassis of the automobile. It is beyond comprehension as to how the value of the excisable product which has been manufactured by some other assessee / person and which is duty paid can be included in the aggregate value of the clearan....