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2017 (3) TMI 369 - AT - Central ExciseValuation - manufacture of motor vehicles parts and clearance to own other unit - valuation done as per the valuation Rules 6b(ii) of erstwhile Central Excise (Valuation) Rules, 1975 - The department’s objection is that the assessable value which is on cost construction method is not correct in as much as the appellant have not included Head Office admin expenses, R&D expenses and royalty in the cost of the production - Held that: - there is no dispute that the recipient units are the appellant’s own units. Therefore if there is any differential duty, liability the same is available as CENVAT credit to the recipient units. As per the submission of Learned Counsel the recipient units have paid ₹ 75.49 crores and ₹ 16.41 crores duty from PLA respectively. In such case the entire exercise of payment of duty and availment of credit is revenue neutral - even though duty is payable and the recipient unit is part of the same entity and is eligible for MODVAT/CENVAT credit paying duty from PLA also then it is a revenue neutral exercise. For this reason demand of duty cannot be recovered - appeal allowed - decided in favor of appellant.
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