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2023 (5) TMI 720 - AT - Central ExciseLevy of differential liability - price variation clause - clearance of aluminium ingots and coils to the said sister units upon payment of excise duty, on the basis of 110% of the estimated cost of production - when the final cost of production was worked out for the FY 2009-10, it emerged that the Appellant had on an overall basis, paid excise duty on the value which is much more than 110% of the cost of production - Revenue Neutrality - Extended period of Limitation. HELD THAT:- When excess paid duty is adjusted against the short payment that net result is that there is no short payment by the Appellant. The Adjudicating Authority failed to do this adjustment. Demanding duty onlu on the short payment, ignoring the excess payment is bad in law. Accordingly we hold that the demand confirmed in the impugned order is not sustainable. Revenue Neutrality - HELD THAT:- The entire exercise is revenue neutral as the duty paid by them will be available as credit for their sister unit - As the entire exercise would be revenue neutral, there is no loss of revenue to the exchequer. The demand confirmed in the impugned order is not sustainable. Since the demand itself is not sustainable, the interest demanded and the penalty imposed against the Appellant in the impugned order is also not sustainable - Appeal allowed.
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