Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 8 - AT - Central ExciseValuation - manufacturers of rubber compound - removal of goods to M/s. HSI Automotives Ltd, who holds 100% of equity shares of appellant - short payment of duty - intent to evade or not - revenue neutrality present or not - Held that:- In the present appeal, revenue neutrality is very much present since the goods manufactured by the appellant were removed only to their holding company M/s. HSI. It is true that the appellants have calculated the assessable value only at around 103% of the cost of production instead of 110%, as required by CAS-4 valuation method. In any case, even if the discharge of duty liability was at 110%, the Department would have been able to avail the same to that extent. It is seen that the appellants have discharged the entire duty liability in respect of the Show Cause Notice dated 01.05.2015 before the issuance of the same and even the remaining amounts proposed in the three Statements of Demand were paid up proximate to their issue - the short payment on the part of the appellant was not with any intention to evade payment of duty and further, since they were clearing the goods only to their holding company, there is definitely revenue neutrality in the entire transaction. Appeal allowed - decided in favor of appellant.
|