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2023 (6) TMI 642 - AT - Central ExciseDemand of differential duty - goods cleared to the own unit - valuation is governed by Rule 8 of Central Excise Valuation Rules 2000 or on the basis of the transaction value at which the goods are sold to the independent buyers? - Suppression of facts or not - time limitation - revenue neutrality - HELD THAT:- As regard the merit of the case, the issue has been decided against the appellant in as much as the larger bench in the case of ISPAT INDUSTRIES [2007 (2) TMI 5 - CESTAT, MUMBAI] held that when partly goods are sold to independent buyer and partly to the assessee’s own unit, the transaction value of the goods at which the goods is sold to independent buyer shall be taken as transaction value for the goods cleared to the related person by the assessee. However, the learned counsel has vehemently argued on limitation. Since the issue was not free from doubt and the matter was referred to larger bench and only then it attained finality. On the basis of the larger bench judgment the issue involved was of interpretation of valuation rules. Moreover, there is a force in the submission of the learned counsel that the recipient of goods in question are belonging to the same company and the duty payable by the appellant on such clearances is available as cenvat credit to the recipient unit hence, the entire exercise is revenue neutral. On this basis, it can be conveniently viewed that there cannot be any mala fide on the part of the appellant with intent to evade payment of duty. Therefore, in such circumstances the demand of extended period cannot be invoked - The demand for the extended period is set aside. Appeal allowed.
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