TaxTMI 
TaxTMI 
2026 (3) TMI 1242
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....8. Thereafter on completion of the investigation, show cause notice was issued on 04.10.2010 for the period from April 2005 to December 2009 and show cause notice dated 14.03.2011 was issued for the period from January 2010 to March 2010. The Adjudication Authority vide order dated 31.01.2012 adjudicated both the show cause notices (SCNs) wherein the duty along with interest and penalty as proposed were confirmed. Aggrieved by said order, appeal was filed before this Tribunal, and this Tribunal vide Final Order No. 25184-25189/2013 remanded the matter for Denovo Adjudication observing that there was negation of natural justice in the original adjudication proceedings. In the Denovo Adjudication, the documents procured by the investigation officer from M/s. Karnataka State Road Transport Corporation (KSRTC) were supplied to the Appellant as requested and thereafter Adjudication authority vide Order-in-Original (Denovo) dated 03.09.2014 after extending opportunity of personal hearing issued the impugned order, confirming the demand along with interest and imposed penalty. 4. When the appeal came up for hearing, the Learned Counsel for the Appellant submits that the impugned order ....
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....; 1,94,33,748 5 Less Cash discount as per tender clause and deducted by M/s. KSRTC 03,63,097 1,90,70,651 6 Less freight on clearances of PCTR, B G and B V C of 2,44,077 + 27,027 + 17,550 at Rs.2/- per kg on average basis quantity As reflected in SCN 5,77,309 1,84,93,342 7 Less SSI exemption limit Notification No 08/2003 dt 1.3.2003 1,00,00,000 8 Value of 84,93,342 @16.32% 13,86,113 9 Less demand duty hit by limitation from 10.04/.2005 to 10/10/05 (SCN Received on 11/10/10) value being Rs 24,51,[email protected]% 4,00,007 10 CENVAT & PLA NIL 11 Net DUTY Liability 9,86,015 12 If Normal period of one YEAR is considered demand is nil NIL 2006 -07 Sl. No. Description Amount in Rupees 1 Total value as per SCN Date: 04.10.2010. (Cum cat and cum duty value) 1,39,16,807 2 Less value Traded goods cleared under commercial / Invoices as per tender NIL 1,39,16,807 3 Less VAT @ 12.5% on PCTR, BVC & 4% on B G 13,44,363 1,25,72,444 4 ....
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....; 2,23,11,037 4 Less VAT @ 12.5% on PCTR 2,60,955 kgs, BVC 30,73 litres and 28,880 kgs 4% on B G 21,55,246 2,01,55,790 5 Less Pro-rata recovery (Actual) - for failure of performance guarantee & Deducted by KSRTC. 95,05,699 1,06,50,092 6 Less Cash discount as per tender & deducted By KSRTC 5,38,121 1,01,11,971 7 Less EQUALIZED freight on clearances of PCTR, BG, BVC of 2,60,955 kgs + 28,880 kgs + 30,73 litres at Rs. 2/- per kg on average basis quantity As reflected in SCN 6,18,408 94,93,563 8 Less SSI exemption limit, Notification No 08/2003 Dated 01.03.2003 as amended 1,50,00,000 9 value 94,93,563 x 16.48% Well within the SSI limit NIL 10 Duty liability 2008-09 NIL 11 Less duty paid through cenvat credit balance NIL 2009 - 10 Sl. No. Description Amount In Rupees 1 Total value as per SCN Date: 04.10.2010. 3,35,37,049 3,35,37,049 2 Less value TRADED goods cleared under Commercial Invoices as per tender 54,67,163 2,80....
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....e firm. Learned Counsel drew our attention to the letter of intent issued by M/s. KSRTC dated 10.09.2005 showing the terms of discount as 3% Prompt Payment Discount (PPD) for payment within 5(five) working days, 2% PPD for payment withing 10(ten) working days, 1% PPD for payment within 15(fifteen) working days and no discount for payment thereafter and within 30 working days. The Appellants also drew our attention to the detailed working of all these years which was submitted before the Adjudication Authority showing sales and payment received details clearly showing invoice amount and the discount granted depending on payment received within 5 days, 10 days, 15 days, date of receipt of payment and cheque numbers. The grant of discount was supported by the actual payment received read with letter of intent terms or purchase order terms. 8. As regards pro rata recovery, the Appellant had claimed an amount of Rs. 72,51,299/- as deducted by M/s. KSTRC as pro-rata recovery for non-performance of the goods supplied by them to the guaranteed level. However, it was rejected by the Adjudication authority on the ground that documents produced by the M/s. KSRTC shows that the pro-rata rec....
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....unt of freight, Learned Counsel submits that as per the estimate and costing, the Appellant equalize the rate of freight of goods to KSRTC as Rs. 2/kg of thread rubber supply and accordingly, they are entitled for deduction of Rs. 29,44,724/- from the assessable value @ 2/kg of thread rubber. The said claim was also rejected on the ground that the Appellant has not shown the cost of transportation in their invoices and not produced any evidence to show that the deduction on the actual transportation incurred by them. 12. As regards the claim for freight, learned counsel for the appellant submits that it was supported by letters of intent and purchase orders which clearly showed that the delivery was at the depots of M/s. KSRTC and freight was to be borne by the Appellants. The Appellants had claimed deduction of Rs. 4,47,224/- @ Rs. 2 per kg of tread rubbers and other materials and also drew our attention to details furnished while submitting the reply dated 04.02.2014. It is evident that M/s. KSRTC has paid the invoice value after deduction of freight charges wherever M/s. KSRTC has arranged transportation of goods from the appellant' s factory to their premises. Learned co....
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....the data furnished by appellant / KSTC, it is concluded that some goods were manufactured and removed clandestinely to evade payment of duty. As regards value to be re-determined, appellant had submitted exhaustive invoice-wise details of the goods manufactured and removed by them to M/s. KSRTC during the period from 2005-06 to 2009-10 in the form of a work sheet enclosed as Annexure-II to their reply to the Show Cause Notice dated 14.07.2011. The said work sheet reveals that the appellant had manufactured and removed goods valued at Rs.17,97,19,351/- and had received an amount of Rs.16,57,57,630/-towards the same. As per the said data, the appellant is also due to receive an amount of Rs.33,65,162/-. The amount received and the amount due to be received has been arrived at after considering the deductions claimed to have been made by M/s. KSRTC towards shortages, cash discount, pro-rata recovery and freight. Thus, as per their own computation, they are liable to pay duty on the value of Rs.16,57,57,630/-received and Rs.33,65,162/-due to be received which totals to an amount of Rs. 16,91,22,792 /-. The records of the case reveal that the appellant had declared the total value of Rs....
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....nt had furnished the entire details regarding such deduction. We find that as per Letter of Intent issued by M/s. KSRTC dated 10.03.2007 the terms of prompt payment discount (PPD) are 3% for payment within 5 working days, 2% for payment withing 10 working days, 1% for payment within 15 working days and no discount for payment thereafter and within 30 working days. The details submitted before the Adjudication Authority showing sales and payment received, clearly shows invoice amount, discount granted depending on payment received within 5 days, 10 days, 15 days, date of receipt of payment and cheque numbers. However, Adjudication Authority has not considered the evidence even after remanding the matter for Denovo Adjudication and denied the same, on the ground that as per Section 4 of the Central Excise Act, 1994, discount extended to customers is a permissible deduction, if it is established that for a given transaction, the discount is actually being passed on to the buyer of the goods. We find that when the issue was considered by this Tribunal in the first round of litigation, specific finding was given regarding the documents obtained from M/s. KSRTC. As per the purchase order....