M/S. PREMIER INSTRUMENTS AND CONTROLS LTD. Vs. CUSTOMS EXCISE SERVICE TAX APPELLATE TRIBUNAL SHASTRI BHAVAN ANNEXE BUILDING

JUDGEMENT

(1.) Civil Miscellaneous Appeal is filed against the order made in final order No.112/2008, on the file of the CESTAT, Madras, dated 18/2/2008, on the following substantial questions of law:-

(2.) Facts culled out from the material on record are that the appellant is engaged in the manufacture of automotive instruments and sensors. They had imported three items, viz., mould inserts, head drills and injection moulds during the period October 1989 to October 1994. The design, drawing and technical information required for manufacture of finished goods out of these imported item were also procured from the supplier. However, the value of design, drawings and technical information was included in the assessable value of the imported goods. The Bills of Entry covering mould inserts were filed during the period 16/10/1989 to 29/4/1991, the Bill of Entry covering head drills was filed on 23/11/1991 and the Bills of Entry covering injection moulds were filed during November 1993 to October 1994. After conducting investigation with regard to the valuation of the goods, the department issued a show cause notice dated 6/5/1998 to the assessee by invoking the extended period of limitation on the ground of alleged suppression of facts. By the time, differential duty had been paid by the manufacturer during the course of investigation, on 13/8/1993, a fact noted in the show cause notice itself.

(3.) M/s. Premier Instruments and Controls Ltd., contested the demand. While adjudicating of the dispute, Commissioner of Customs appropriated the aforesaid payment towards the demand of differential duty under the proviso to Section 28 (1) of the Customs Act, 1962, imposed a penalty of Rs. 10 lakhs on M/s. Pricol under Section 112 (a) of the Act, and imposed a penalty of Rs. 1.00 lakh on their CHA viz., M/s. Visa Exim Corporation. In appeals filed by M/s. PRICOL and their CHA against the Commissioner's order, vide Order dated, 18/2/2008, Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai, reduced the penalty to Rs. 5,00,000/- and thus allowed the duty portion. Aggrieved by the remaining portion of penalty, M/s. Premier Instruments and Controls Ltd., Coimbatore, has filed the instant appeal.