At, Customs Excise Service Tax Appellate Tribunal South Zonal Bench At Chennai
By, THE HONOURABLE MS. JYOTI BALASUNDARAM
By, VICE PRESIDENT & THE HONOURABLE DR. CHITTARANJAN SATAPATHY
By, TECHNICAL MEMBER
Shri Muthuvenkatraman, Advocate, Shri C.Rangaraju, SDR
Per Jyoti Balasundaram
On hearing both sides, we note that the issue in dispute in the assessees appeal namely as to whether cost of drawings supplied free of charge by customers is includible in the assessable value of goods manufactured by the assessees herein stands settled against them by the decision of the Tribunal in Swil Ltd. Vs CCE Calcutta [2001 (128) ELT 510]. We, therefore, uphold the duty demand as a result of such inclusion. However, the same decision sets aside the penalty imposed on the assessees and following the ratio thereof, we set aside the penalty imposed upon the assessees herein. The Revenue?s appeal against the finding of the Commissioner (Appeals) against imposition of combined penalty under Section 11AC of the Central Excise Act read with Rule 173Q of Central Excise Rules, 1944 is dismissed in view of our finding that the assessees are not liable to any penalty. In
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the result, the appeal of the assessees is partly allowed while the appeal of the Revenue is rejected.