LAWS(CE)-2006-8-73

KCP LTD. Vs. COMMISSIONER OF C. EX., GUNTUR

Decided On August 28, 2006
Kcp Ltd. Appellant
V/S
Commissioner Of C. Ex., Guntur Respondents

JUDGEMENT

(1.) THIS appeal arises from Order -in -Appeal No. 4/2004 C.E., dated 21 -1 -2004. The Revenue had filed an appeal against Order -in -Original No. 197/99 dated 14 -12 -99 by which the Asst. Commissioner had held that the cost of the gunny bags is not required to be added in the assessable value of the cement. But the Commissioner in the impugned order has followed the ratio of several judgments to hold that the cost is required to be added in the assessable value. He also imposed penalty of Rs. 25,000/ -.

(2.) THE learned Counsel has filed a letter issued by Mandal Revenue Officer, Macherla to state that due to arson and looting occurred on 22 -5 -91, the administrative building of the assessee was burnt down. He has also produced a certificate from the Fire Service Department. Therefore, he submits that in view of the records having been burnt, they were unnable to establish before the lower authorities the fact of the returnable nature of the gunny bags. He submits that there is no intention to evade duty and hence, penalty is not leviable.

(3.) THE learned JCDR relies on the ratio of this benchs judgment rendered in the case of Panyam Cements and Mineral Indus. Ltd. v. CCE, Hyderabad - 2004 (173) E.L.T. 284, wherein it has been held that the assessee should produce evidence with regard to the returnable nature of the gunny bags used for packing of cement sold along with the cement to seek the deduction in the assessable value of the cement. As the same has not been produced, the appeal had not been accepted. He submits that the issue is covered by this judgment in Revenues favour.