M. Veeraiyan, Technical Member - Heard both sides extensively on the stay petitions.

2. The appellants are manufacturers of pig iron and MS billets and selling their products partly ex-factory and partly through consignment agents. On the basis of some report received from the Commissioner of Customs & Central Excise, Surat relating to one of the consignment agents, investigation was conducted and a show cause notice was issued wherein it was alleged that the consignment agents had collected amounts in excess of the invoice prices adopted for payment of excise duty. On the basis of the show-cause notice dated 30-7-2010, a sum of Rs. 91,08,063/- relating to period July 2005 to June 2009 stands confirmed along with interest and penalty under Section 11AC stands imposed. In addition to that, a penalty of Rs. 50,000/- on Mr. J. Viswanathan, Vice-President of the assessee-company stands imposed.

3. The learned advocate for the appellants submits that they are selling goods ex-factory to different parties and in addition clearing to the consignment agents who sell the products to various customers. In some cases consignment agents appear to have collected amounts towards bill discount charges and interest for delayed payments. These extra amounts allegedly collected by the agents are not received by the appellants. Therefore, the demand of duty of excise including the said amounts collected by the consignment agents is not justified. He further submits that in the facts and circumstances of the case, invocation of extended period of limitation is also not justified.

4. The learned Additional Commissioner (AR) submits that the appellant themselves have admitted short levy to the tune of about Rs. 15.2 lakhs.

5.1 We have carefully considered the submissions from both sides and perused the records.

5.2 On a perusal of the show-cause notice, it is noticed that the consignment agents have claimed the extra collection as due to LC charges and other bank charges and interest for delayed payments. This claim of the consignment agents appears to have not been investigated. Further, the appellant's claim that they are selling the final products ex-factory to various parties in addition to selling the goods through consignment agents has not been refuted. In view of the above, it appears that the extra collections (which according to the learned advocate, is in the range of 0.84% to 2.35%) are attributable to banking charges and interests on delayed payments. Therefore the same may not be includible in the assessable value.

6. In view of the above, there shall be waiver of pre-deposit of dues as per the impugned order and stay of recovery thereof till the disposal of the appeals. Both the applications are allowed.