DECCAN STRUCTURAL SYSTEMS (P) Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) THIS appeal arises from OIA No. 165/2003 dated 21.10.2003 passed by the Commissioner of Central Excise (Appeals -II), Bangalore.

(2.) THE appellants manufacture Steel Doors, Windows, Gates, etc. which are excisable commodities. In the course of audit of the records, it was noticed that the appellants collected more freight charges from their customers than actually incurred. Further, the appellants who avail modvat on inputs cleared the inputs subsequently on payment of appropriate duty. The appellant while clearing the inputs paid duty as applicable to SSI unit, since the appellant enjoyed the benefits under SSI Notification. However, the department contended that the appellant should have reversed the modvat credit taken while receiving the inputs. These are the two issues in this appeal. The lower authority decided against the appellant. An amount of Rs. 9,296/ - was demanded on account of the transportation charges not included in the assessable value of the goods cleared during the period from 1.7.2000 to 31.03.2002 under proviso to Section 11A of the Central Excise Act. Further, an amount of Rs. 17,431/ - was demanded on account of duty short paid on inputs cleared as such during the period from 1997 -1998 to 1999 -2000 under the erstwhile Rule 57I of the Central Excise Rules 1944 read with proviso Section 11A of the Central Excise Act, 1944. The Adjudicating Authority imposed a penalty of Rs. 26,727/ - under Section 11AC. Further, interest was also demanded. The appellant went to Commissioner (Appeals). The Commissioner (Appeals) upheld the OIO. Therefore, the appellants have come before this Tribunal for relief.

(3.) SHRI M.S. Srinivasa, the learned Advocate, appeared for the appellants and Shri R.K. Singla, the learned JCDR, for the Revenue. The learned Advocate pointed out with regard to the inclusion of freight in the Assessable value that freight is not includible in the assessable value, just because the actual freight collected from the customers is more than the freight incurred. The lower authorities have disallowed the entire freight and added the same to the assessable value and demanded duty. He said that the issue is covered by a large number of cases.