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2014 (4) TMI 835 - AT - Central ExciseValuation of goods - sister concern - revenue neutral exercise - Revenue contends that assessee should have cleared the goods to their sister units at the assessable value arrived at in terms of Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, which provided for adoption of assessable value as 110% of the cost of production or manufacture of such goods - Held that:- admittedly goods were being cleared by the respondents on payment of duty and it is not a case of clandestine removal. The only objection of the Revenue was that the assessable value was adopted on the lower side inasmuch as the same should have been arrived at by taking into consideration 110% of cost of production. At this stage, we note that whatever duty was paid by the respondents was being availed as Cenvat credit by their sister concern. As such, the differential duty required to be paid by the present respondents was available as Cenvat credit to their sister concern, thus making the entire exercise as revenue neutral. There are umpteen number of decisions holding that in such a scenario, no mala fide can be attributed to the assessee. As such, we find no favours with the Revenue’s contention that short payment was made by the respondents on account of any mala fide so as to ignore the provisions of Section 11A(2B) - Decided against Revenue.
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