INTERNATIONAL AUTO LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The appellant is a job worker manufacturing floor plates assemblies for TELCO. These floor plate assemblies are used by TELCO in the manufacture of excavators. TELCO made available several inputs to the appellant for the purpose of manufacture of the assemblies on which credit had been taken by TELCO. The appellant used TELCO's inputs as well as its own inputs in manufacturing the assemblies. It cleared the assemblies from its factories upon payment of excise duty on the completed floor plate assemblies by including the value of only the inputs put in by the appellant and adding thereto its service charges.

(2.) By show cause notice dated 22.2.1994, the appellant was called upon to show cause as to why it should not be charged with short levy of excise duty for the period 28.2.1993 to 31.8.1993 on the ground that the value of the TELCO's inputs in the assemblies should have been included in the assessable value of the assemblies.

(3.) The Departmental Authorities confirmed the demand and also levied penalty on the appellant's having negatived its contention that the demand was in any case barred by limitation.