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2015 (5) TMI 374 - AT - Central ExciseValuation - inclusion of value of goods supplied free of cost - Demand of differential duty - Suppression of value of goods - Imposition of interest and penalty - Held that:- If certain items supplied by the buyers free of cost to the manufacturer the value consideration of the said items in the form of amortization cost must be added in the assessable value for the reason that the sale value in such case cannot be considered as sole consideration. Therefore, we are of the view on this count that amortization cost is legally includible in the assessable value. - As regard the goods supplied by the appellant to their sister concern, it is undisputed that valuation of such goods is adopted by cost construction method in terms of Rule 8 of Central Excise Valuation Rules, 2000. In accordance to which valuation should be 110% of the cost of manufacture of the goods. From the impugned order it was found that the appellants have not correctly valued the goods and not added 10% notional profit in the assessable value while clearing the goods to their sister concern. - differential duty demand on both the counts are correct and legal and the same does not require any interference. Appellant have not added amortization cost in respect of goods supplied to other than related person and also not correctly valued in respect of goods supplied to their sister concern. The fact of incorrect valuation and consequent short payment of duty was clearly suppressed by the appellant from the department therefore proviso to Section 11A in demanding differential duty was correctly invoked - It is straight law, irrespective of any other factors as and when a manufactured goods is cleared from the factory of the manufacturer he is bound to pay the correct duty leviable thereon, there is no explanation provided in the excise law that if buyer is entitled for the Cenvat Credit therefore no duty is required to be paid. Therefore, we do not agree that merely because recipient of the goods are entitled for the Cenvat Credit, it is a case of revenue neutrality. The availment of Cenvat Credit is subsequent act and that cannot be basis for payment of duty in the clearance of the goods from the manufacturer factory. - . Commissioner has correctly imposed the penalty under Section 11AC and interest under Section 11AB which does not require any interference - Decided against assessee.
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