2026 (7) TMI 366

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....he demand of duty has been confirmed along with interest and an equivalent amount of penalty has also been imposed on the appellants. 2. The facts of the case in brief are that the appellants are engaged in the production of excisable goods, namely, coal. It was alleged that they have contravened the provisions of Section 4 of the Central Excise Act, 1944 as they have short paid Central Excise duty under "duty amount" by way of undervaluation of their finished goods and by suppressing the actual transaction value and also by not including the element of "Royalty" and "Stowing Excise Duty" charges collected from their customers into the assessable value of coal cleared during the period March, 2011 to February, 2013 and thus, the appellan....

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....tation, this Tribunal in the case of Bharat Coking Coal Limited v Commissioner of CGST & Central Excise, Final Order No.7784977854/2025 dated 25th November 2025 has set aside demand confirmed falling outside the normal period of limitation along with penalty. 4. The ld.A.R. for the Revenue has justified the impugned order. 5. Heard both the parties and considered the submissions. 6. On merit, we find that the issue involved in the appeals, is principally with respect of the deduction or otherwise, from the "transaction value" defined under Section 4(3)(d) of the Central Excise Act, 1944, under the exclusion of "other taxes", on the following amounts recovered by the appellant in its sale cum excise invoice: a. Royalty ....

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....ve Table, we find that in almost all these cases, the Show Cause Notices were issued after one year from the relevant period. The normal period to issue SCN during that point of time was one year. Since the matter was being litigated upto Supreme Court, it is a case of interpretation. Hence, we do not find that the Revenue has made out any case of suppression on the part of the appellant. Accordingly, we set aside the confirmed demand for the extended period in respect of all the impugned orders and allow the appeals to this extent. The demand for the normal period, if any, would sustain for which the interest at the applicable rate will be payable. However, considering the factual details and the issue of interpretation, the penalties impo....