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2018 (3) TMI 1755 - CESTAT KOLKATAValuation - clearance of goods to sister units - related party transaction -it was alleged that duty liability was discharged at the value adopted for clearance of goods at the factory gate to independent person - HELD THAT:- It is seen that substantial evidence of the inter connected nature of the two entities in accordance with Section 4 of the Central Excise Act, 1944 is on record. The valuation is of goods cleared to M/s Pawan Casting (Meghalaya) Pvt. Ltd., which Should, therefore, have been computed on cost of production was not undertaken by the appellant. Accordingly the appellant’s liability to pay tax does not conform to Central Excise Valuation Rules, 2000. The claim of the appellant that the entire exercise is revenue neutral as they are entitled to the benefit of refund of duty discharged will not suffice for the purpose of excluding them for the application of the said Rules. Penalty - HELD THAT:- There has been no suppression on their part and duties have been paid on value which is no different for clearance to independent purchasers and that, in any case, they were entitled to get refund of the tax discharged by them - penalty do not sustain. Appeal allowed in part.
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