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2021 (9) TMI 74 - AT - Central ExciseValuation - Scope of the SCN - related persons or not - transferor and the transferee units owned by the same legal entity - raw coal transferred by the appellant’s coal producing unit, namely, WJ Area to its washery unit - dispute with regard to valuation is only for the period upto October 2015 (during the period when the units were separately registered with jurisdictional excise authorities) - revenue neutrality - extended period of limitation - HELD THAT:- The entire case of the Revenue is based on the observation that the two different units of the appellant are related persons but the relevant Rule 9 has not been invoked - Since the entire foundation of the show cause notice is based on the wrong notion that the washery is a “related person” of the appellant, the entire demand is liable to be quashed. Further the invocation of Rule 8 of the Valuation Rules has been done mechanically without even appreciating the fact that there is no captive consumption by the appellant or consumption on its behalf and washing of coal is neither production nor manufacture. Revenue neutrality - HELD THAT:- Since the issue is decided on merits to hold that Rule 8 of the Valuation is not applicable in the instant case, we are not further entering into the issue of revenue neutrality as pleaded by the appellant. Extended period of limitation - HELD THAT:- In so far as the limitation is concerned, we do not find any positive evidence in the entire SCN to prove the element of fraud or suppression and hence, the extended period is not applicable in the instant case. Appeal allowed - decided in favor of appellant.
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