ASHOK LEYLAND LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) After examining the record and hearing both sides, we find that the appeal itself should be disposed of finally at this stage. Accordingly, we allow the present application and proceed to deal with the appeal.

(2.) The appellants, manufacturers of motor vehicles and parts thereof, had cleared certain consignments of motor vehicle parts on payment of duty during October, 1999 to March, 2000. But, at that time, they had not included the cost of packing in the assessable value of the goods and had not paid duty on that part of the value. The duty which so remained unpaid amounted to Rs, 51,22,306/ -, which the appellants subsequently paid on 4 -11 -2000. A show cause notice was issued by the department on 16 -2 -2001 proposing, inter alia, to levy interest on the duty under Section 11AB of the Central Excise Act, 1944 and impose mandatory penalty under Section 11AC of the Act. The proposals were contested. In adjudication of the dispute, the Commissioner of Central Excise appropriated the aforesaid payment of duty towards full discharge of duty liability on the goods, directed payment of interest on that duty under Section 11AB, and imposed a penalty equal to duty on the assessee under Section 11 AC. This decision of the Commissioner is under challenge in the present appeal.

(3.) Ld. Counsel for the appellants submits that the issue involved in this case is squarely covered in favour of the appellants by the following decisions of the Tribunal : -