CLIMATE SYSTEMS INDIA LTD. Vs. CCE, JAIPUR-I

JUDGEMENT

(1.) In this appeal filed by M/s. Climate Systems India Ltd., the matter relates to the imposition of penalty of Rs. 4,36,000/ - under Rule 173 Q of the Central Excise Rules, 1944. The allegations against the appellants were that when they supplied their goods to the customers, there was a Price Escalation Clause. The goods involved were mechanically assembled aluminum radiators and their customers were M/s. Maruti Udyog. In consequence of the Price Escalation Clause, they got extra amounts but did not declare the same to the department. They deposited the amount on varying dates from September, 1994 to March, 1995. The major portion of the amount was deposited on 23.12.94 while the goods were supplied during the period April, 1993 to October, 1994.

(2.) Shri V.M. Verma, Advocate submits that the appellants were not required to disclose the details of the Price Escalation Clause. There was no malafide and the amount was deposited when the requirement was made by the Department. The amount has been deposited before the issuance of the show cause notices. He submits that there was no ground for imposition of penalty. He has not contested the duty liability.

(3.) Shri Mewa Singh, SDR submits that when there was a Price Variation Clause, it was incumbent on the assessee to disclose the same to the Department and the duty liability should have been calculated on the basis of the actual price obtained from the customers.