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2023 (8) TMI 700 - AT - Central ExciseMethod of Valuation - Rule 8 of the Valuation Rules, 2000 applicable or not - activities carried on job-work basis - intent to evade duty or not - revenue neutrality - time limitation - HELD THAT:- In the present case, it is seen that the appellant has adopted the value based on the costing given by the principal. Based on this costing the appellant has adopted their assessable value. During many months, the value adopted by them is more than 110% value arrived at by the department. This itself shows that the appellant had no intention to evade any excise duty. Further as submitted by the appellant, the entire excise duty paid by the appellant is available as Cenvat Credit to their principal, M/s. Tata Steels Ltd.. Therefore this has resulted in a revenue neutral situation - In various cases, it has been held that in such cases the demands do not survive both on merits as well as on the point of limitation. In the case of CCE AHMEDABAD-II VERSUS M/S RECLAMATION WELDING LTD. [2014 (8) TMI 186 - CESTAT AHMEDABAD], the Tribunal observed that No evidence has been introduced by the Revenue as to how job worker and the raw material supplier are related persons for the purpose of attracting Rule 8 of the Central Excise Valuation Rules, 2000. Even if any additional duty was payable the same was also available as credit to the recipient of goods. It is an exercise entirely covered by the concept of revenue neutrality, as per the case laws relied upon by the respondent. Secondly, in the event of credit being admissible to the recipient of the same group of companies it cannot be held that there could be any intention on the part of the respondent to evade payment of duty and accordingly extended period is not attracted in the present demands. The appeal allowed both on merits as well as on the point of limitation.
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