M/S. Light Alloys Products Ltd vs Commissioner Of Central Excise, ...
- CitationAppeal No.146/03 (M-III), dated 23.12.2003 passed by the Commissioner of Central Excise
Ratio decidendi
The rule this decision rests on
The cost of moulds and dies, which the manufacturer amortizes, forms part of the assessable value for central excise duty, and the adjudicating authority is to compute the amortized portion of that value and determine the duty liability on that basis. Where the duty is unpaid it is to be recovered with interest, and where it has already been paid the authority is to verify the payment and grant appropriate credit. Where the assessee was prevented, by the absence of invoices, from amortizing the cost of moulds and dies, and there was no intention to cause prejudice to Revenue, penalty under Section 11AC of the Central Excise Act, 1944 and under Rule 173Q of the Central Excise Rules, 1944 is not imposable.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Order-in-Appeal No.146/03 (M-III), dated 23.12.2003 passed by the Commissioner of Central Excise (Appeals), Chennai ]
M/s. LIGHT ALLOYS PRODUCTS LTD. APPELLANT
Versus
COMMISSIONER OF CENTRAL EXCISE, CHENNAI-III RESPONDENT
Appearance:
For the Appellant Ms. S. Sridevi, Adv.
For the Respondent Ms. Indira sisupal, AC (AR)
CORAM:
Honble Shri D.N. Panda, Judicial Member Honbe Shri R. Periasami, Technical Member
Date of hearing/decision 30-03-2015
FINAL ORDER NO. 40359 / 2015
Per D.N. Panda:
Learned counsel fairly submits that in absence of invoices, appellant was prevented to amortize the cost of moulds and dies. But there was no intention to cause prejudice to Revenue. For such difficulty, there is duty demand of Rs.32,152/- followed by penalty of Rs.18,955/- under Section 11AC of the Central Excise Act, 1944 and penalty of Rs.5,000/- under Rule 173 Q of the Central Excise Rules, 1944.
2. There shall be no difference to the proposition of law that cost of moulds and dies shall be amortized and that shall form part of assessable value. Therefore, learned Adjudicating authority is correct in computing the amortized part of the assessable value and determine the duty liability.
3. If duty is not paid, that shall be realized with levy of interest. If duty is already paid, that shall be verified by him and appropriate credit be given.
4. For the reason of difficulty expressed as above, there shall be neither penalty under Section 11AC of the Central Excise Act, 1944 nor under Rule 173 Q of the Central Excise Rules, 1944. Appeal is partly allowed.
(Dictated and pronounced in open court)
(R. PERIASAMI) (D.N. PANDA) TECHNICAL MEMBER JUDICIAL MEMBER
ksr 06-04-2015
DRAFT Remarks
I II III
Date of dictation 30.03.2015
Draft Order - Date of typing 30.03.2015
Fair Order Typing 06.04.2015
Date of number and date of dispatch
4 E/00423/2004
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