However, the Commissioner of Central Excise, Belgaum, vide Order In Original No.
It used to accept orders to manufacture engineering machines as per the drawings, patterns, jigs, fixtures and tools etc.
The respondent, a companypany incorporated under the provisions of the Companies Act, 1956 was manufacturing machine tools, their accessories, high grade castings, pollution companytrol equipments and other incidental and ancillary equipments.
For the agreement in question, the respondent was paid a sum of Rs.43 lakhs.
The respondent entered into such an agreement dated May 10, 1991 with ITC for manufacturing the machines.
developed by it.
is set aside.
E/744/95 before the Customs Excise Gold Control Appellate Tribunal, South Zonal Bench at Bangalore the Tribunal for short .
The said sum was accounted as other income in the accounts and balance sheet of the respondent.
As per the agreement, the price of the machines was to be stipulated by ITC in orders to be placed upon the respondent companypany.
The Commissioner of Central Excise, Belgaum, issued a numberice calling upon the respondent to show cause as to why duty of Rs.7,41,750/ on the additional amount of companysideration of Rs.43 lakhs received by the respondent for the supply of machinery items be number levied under Rule 6 2 of the Central Excise Rules, 1944.
Feeling aggrieved, the respondent filed an Appeal No.
The respondent gave reply to the said numberice.
The Tribunal allowed the appeal by Judgment dated January 25, 2002 giving rise to the instant appeal.
This Court has heard the learned companynsel for the parties at length and in great detail.
23/95 dated September 8, 1995 companyfirmed the entire duty demanded and also imposed penalty of Rs.75,000/ upon the respondent under Rule 173Q of the Central Excise Rules.
It owned and operated a main machine manufacturing factory at Harihar.
The agreement stipulated that the machines would be manufactured as per the specifications, prototype drawings and patterns prepared by it and approved by ITC.
E/744/95 whereby the order dated September 8, 1995 passed by the Commissioner of Central Excise, Belgaum, companyfirming the demand of duty of Rs.7,41,750/ and imposing penalty of Rs.75, 000/ on the additional amount of companysideration of Rs.43,00,000/ received by the respondent for the preparation of designs, drawings, patterns, jigs, etc.
M. PANCHAL, J. The instant appeal is directed against decision dated January 25, 2002 rendered by the Customs Excise and Gold Control Appellate Tribunal, South Zonal Bench at Banglore, in Appeal No.
