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2023 (10) TMI 734 - AT - Central ExciseViolation of principles of natural justice - opportunity to analyse or counter the findings of the Deputy Director (Cost) not provided - Valuation of goods removed to sister concerns - to be valued on the basis of cost plus 10%,in terms of Rule 8 of Central Excise (Valuation) Rules, 2000 or not - time limitation - revenue neutrality - HELD THAT:- The report of the Deputy Director (Cost) was not provided to the appellants; the working papers on the basis of which the Deputy Director (Cost) has arrived at the figures are also not given; the same are not even explained in the show-cause notice - This is a serious case of violation of principles of natural justice as the appellants have been denied an opportunity to analyse or counter the findings of the Deputy Director (Cost). Further, ongoing through the show-cause notice, it is found that no reasonable justification has been given to invoke the Valuation Rules except for making a bland averment that the appellants are clearing goods to their sister concerns at a lower price. The variation in the quality and thickness of the goods supplied to the sister concerns has not been distinctly brought out; no chemical analysis of the products has been made. The prices of goods cleared to their sister concern are shown to have been less compared to their clearances of comparable goods to independent buyers, the Department has not made any case for taking recourse to CVR, 2000. In the present matter it has not been disputed by the Revenue that almost 60% of the goods manufactured by the appellant are sold to the buyers who are not related and the price is the sole consideration. It clearly shows that the value of the goods at the place and time of removal is available and that price should be adopted for the purpose of ascertaining the assessable value of the goods which are used captively by Unit-I and Unit-II of the appellants. The impugned order is not sustainable - the issue of limitation or revenue neutrality not examined as appeal survives on merits - appeal allowed.
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