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2019 (3) TMI 1277 - AT - Central ExciseMethod of Valuation - clearance to their sister concern consignments of HR strips - case of Revenue is that the assessable value is not correct, sales to their own unit has to be treated as captive consumption - period July 2000 to June 2001 - Held that:- There is no doubt as to the fact that the Patancheru unit is functioning under the name and style of PM Telelinnks Ltd., and consuming the HR sheets in their factory premises for manufacturing of CR sheets. The findings of the lower authorities is that the valuation should be based upon the Rule 8 of Central Excise Valuation Rules 2000, is also correct to the extent that it has been cleared for captive consumption to their own factory. To that extent, the order of the First Appellate Authority as well as the adjudicating authority is correct - however, the lower authorities have not considered the fact that the HR sheets which are manufactured by the appellant are cleared to their own concern under duty paying document. Revenue neutrality - Held that:- The entire demand becomes revenue neutral as the clearances were to their own sister concern who availed the CENVAT Credit - Tribunal in the case of Kansai Nerolac Paints Ltd. [2013 (8) TMI 1022 - CESTAT AHMEDABAD] have held that There cannot be any intention to evade duty on such clearance made to their own sister concern, as the said sister concerns admittedly are discharging the duty liability on the final products manufactured by them; which would mean that the sister concerns could have availed the Cenvat credit of any duty paid by the appellant on clearance of resins to them. Appeal allowed - decided in favor of appellant.
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