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2018 (7) TMI 1937 - AT - Central ExciseValuation - inter unit transfer of the goods - applicability of Rule 8 of the Valuation Rule or under any provision of Section 4 (a) of the Act - HELD THAT:- In the case of ISPAT INDUSTRIES LTD. VERSUS COMMISSIONER OF C. EX., RAIGAD [2007 (2) TMI 5 - CESTAT, MUMBAI], it was held that the Rule 8 of the Central Excise Valuation Rule is applicable only in case where the entire production is being transfer to their sister units. There is no sale to the independent buyers. Where there is the sale to the independent buyers the Valuation is required to be confirmed under the provisions of the Section 4 (a) of the Central Excise Act and not under valuation Rule. The issue has been resolved by the decision of Larger Bench of the Tribunal which has been confirmed by the Supreme Court, and therefore, is binding on the Adjudicating Authority. This aspect has not been considered ignorantly by the Adjudicating Authority. Penalty - HELD THAT:- The assessee has paid the duty only on the account of fact the payment of duty by the first unit is available as the Cenvat Credit to the other unit and emerging into the Revenue Neutral situation. In such a case there is no scope of payment of any imposition of any penalty under Section 11AC of the Act or interest under 11AB of the Act. Appeal allowed - decided in favor of appellant.
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