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2023 (4) TMI 970 - CESTAT KOLKATARecovery of Central Excise Duty alongwith interest and penalty - under-valuation - footwear components for use within the factory and in their own factories at other places as well as for use by their job workers for manufacture of complete footwear - determination of assessable value of the said goods in terms of Section 4 of the Central Excise Act, 1944 read with Central Excise (Valuation) Rules, 1975 for the period of April 1996 to August 1998 - extended period of limitation - HELD THAT:- The cost of raw material vary depending upon the raw material used and hence a variable item like ‘raw material’ cannot be the basis for working out the ‘overhead charges’. The Appellant arrived at the ‘overhead charges’ as a percentage of ‘wages’ which appears to be more appropriate than adopting raw material cost, to arrive at the ‘overhead charges’. The Appellant has already paid duty on the basis of the cost arrived at based on the method cited above. Thus, there is no under-valuation in the costing of the product adopted by the Appellant. Accordingly, the demand does not survive. As the demand is not sustainable, the demand of interest and penalty also not sustainable. Extended period of limitation - HELD THAT:- Since the issue is already held that on merit itself the demand is not sustainable, issue of Limitation is not examined further. Appeal of Revenue dismissed.
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