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2017 (8) TMI 1218 - AT - Central ExciseValuation - whether the cost of production of captively consumed goods for which CAS-4 standards had been notified vide CBEC Circular No. 629/8/2003 dt. 13.2.2003 can be applied in pending matters for earlier periods also as held in the case of National Aluminium Co. Ltd. [2005 (3) TMI 186 - CESTAT, NEW DELHI]? - Held that: - Admittedly, the overhaul of the Section 4 of the Central Excise Act and that of the Valuation Rules was effected in 2000 as a response to the large number of disputes that had been festering in respect of valuation of final products and valuation of captive consumption of goods etc. The Board s circular dt. 13.2.2003 has issued the advisory to follow CAS-4 standards for determining the assessable value in respect of captive consumption goods. Ostensibly, this has been done with an intent to ensure that cost is determined in line with universally acceptable standards of costing expressing CAS-4 standards. In such a situation, in respect of disputes on valuation of captive consumption goods, which have been pending even after 2000, the adoption of a more scientific and transparent method of costing would indeed do no harm to either parties since the said standard greatly reduces the scope for dispute - in respect of disputes on valuation of captive consumption goods, which have been pending even after 2000, the adoption of a more scientific and transparent method of costing would indeed do no harm to either parties since the said standard greatly reduces the scope for dispute. On the peculiar facts of this case and taking note of the circumstances by which the appellant paid excess duty on three products which all revolves around the application of CAS-4 cost construction method which was under much dispute and confusion during the relevant period, we are of the view that the plea of the appellant for adjustment of the excess paid duty towards the demand requires to be allowed. Penalty - Held that: - there can be no allegation of suppression of facts, fraud or collusion that could be held against the assessee, especially considering that they are seeking resolution of the dispute by adoption of CAS-4 costing introduced by the department in 2003 - imposition of penalty of ₹ 20 lakhs imposed under Rule 173Q (1) of the CER 1944 cannot then sustain - penalty set aside. Appeal partly allowed and part matter on remand.
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