TMI Blog2017 (9) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... /2008 - Final Order No. 41869-41870 / 2017 - Dated:- 23-8-2017 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri T. Chandran Nair, Advocate for the Appellant Shri R. Subramaniyam, AC (AR) for the Respondent ORDER Per Bench The appellant, M/s. R.K. Industries, are manufacturers of Mixed Odoriferous Substances (perfumes) and also undertakes job work to M/s. Hindustan Lever Limited (herein after referred to as M/s. HLL). They received raw materials from M/s. HLL for the manufacture of Mixed Odoriferous Substances which is the main ingredient for manufacture of soaps. On the basis of intelligence that the appellant after job work have undervalued the goods, a surprise vis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out any change. Though there is a frequent fluctuation in the cost of various raw materials supplied by M/s. HLL MOS Unit, the assessable value had not been revised in accordance with Rule 11 r/w Rule 6 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Subsequently, the premises of M/s. HLL MOS Unit was also visited by the officers. It was found that the value adopted by M/s. HLL MOS unit for the clearance to the appellant is nothing but the value of raw materials received by M/s. HLL MOS Unit. It was found that the value adopted for the clearances of Wheel Green and Wheel Blue Lime by appellant, after job work, were undervalued and the assessable value adopted was not in terms of Rule 11 r/w Rule 6 of Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After being pointed out by the Central Excise officers, entire duty along with interest was paid by M/s. HLL. When duty and interest has been paid on being pointed out, no show cause notice ought to have been issued as provided under section 11A(2B) of Central Excise Act, 1944. He added that there was no intention on the part of the appellant to evade or avoid payment of duty as whatever duty is paid is admissible as credit to HLL/job workers / vendors and the whole issue gives rise to a revenue neutral situation. That on this ground alone, the demand is not sustainable. 3. Further, out of the 15 products, value of 13 products was higher than the actual value arrived at by M/s. HLL based on actual costing and the allegation is only with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That immediately, after being pointed out by the audit, the appellants have paid the duty along with interest. In such a case, the show cause notice ought not to have issued. So also the intention to evade payment of duty cannot be alleged when the job worker / vendors/ HLL is eligible to take CENVAT credit on the duty paid. Thus, the situation would give rise to revenue neutral and therefore, in our opinion, as laid down in the case of Prakash Industries Ltd. (supra), the demand is unsustainable. Since the demand and interest are paid by the appellant and the ld. Counsel for the appellant has not challenged the duty demand and interest and has confined his arguments only to the penalty, we hold that the differential demand and interest ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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