KLM PACK Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE case of the department is that the Assessees did not reverse the correct credit amount of CENVAT involved on the closing stock of inputs and inputs contained in finished goods lying in stock, after opting to full exemption in terms of Notification No. 8/2003 -CE dt. 1.3.03 w.e.f. 1.4.05 according to the Assessees, the CENVAT credit required to be reversed was only Rs. 16,636/ - which was done by them, while according to the Revenue, they were required to reverse an amount of Rs. 2,79,578/ -. The difference arises as a result of Assessee's valuing the closing stock at Rs. 13,83,437/ -, while the department has arrived at the value of Rs. 17,47,361/ -.

(2.) I have heard both sides. The Assessees make submissions both on merit and time -bar. They submit that certain elements such as freight and sales tax, which are not required to be included in the assessable value, have been added and this has resulted in the increase in value to Rs. 17,47,361/ -. The second submission is that the demand is barred by limitation as the Assessees are not guilty of any suppression with intention to evade payment of duty, as the department has made out the case on the basis of Assessee's profit and loss account which clearly shows inclusion of sales tax and freight etc.

(3.) APPEAL is thus allowed by remand.