TMI Blog2016 (12) TMI 1453X X X X Extracts X X X X X X X X Extracts X X X X ..... ister concern and the sister concern is eligible to avail the cenvat credit of the duty paid by the appellant. If that be so, there cannot be any mens-rea attached to the clearances made by the appellants to the sister concern and discharge of duty by adopting a particular assessable value. The law is fairly settled on this issue inasmuch that if the clearances are made to their own sister concern and if other unit is eligible to avail cenvat credit, there cannot be any intent to evade central excise duty - In view of the revenue neutral situation, in the facts and circumstances of this case, it is held that the demand and the interest liability is unsustainable in respect of the product in question Ethion Technical. As regards the penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to discharge the duty liability on the value arrived at by considering the cost of production and profit margin. The period in dispute is from April 1999 to March 2003, hence the provisions of Section 4 of the Central Excise Act, 1944 as applicable for pre-and post 1.7.2000 needs to be considered, accordingly the Revenue authorities came to a conclusion that for captive consumption of the chemicals by a appellant s sister concern, it needs to be valued in accordance with the Valuation Rules which is based on the cost of raw materials plus the profit margin as per old Valuation Rules and the new Rules. It is the case of the Revenue that as per cost of production method, the assessable value of the goods cleared to their own sister c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - April 2002 to March 2003 2,98,112 2,98,112 3 4DN July 2000 to March 2001 1,80,503 1,80,503 4 Pendimethalin 30% April 2001 to March 2002 9,900 - April 2002 to March 2003 5,82,790 5,82,790 5 Imidachlorprid Tech April 2002 to March 2003 1,53,395 1,53,395 6 Ethion Technical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . He would submit that the Larger Bench decision of the Tribunal in the case of Ispat industries Ltd 2007 (209) ELT 185 was also holding a view that once there is factory gate sale value and transaction value of any products, the same should be applied for the clearances made to their own sister concern for discharge of duty liability, hence penalties imposed on them needs to be set aside. 4. Learned departmental representative, while reiterating the findings recorded by the adjudicating authority, would submit that the cost of production of the goods were more than the value applied to independent buyers. It is his submission that this factual aspect is not disputed by the appellants. He would submit that there is evasion of duty he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at be so, there cannot be any mens-rea attached to the clearances made by the appellants to the sister concern and discharge of duty by adopting a particular assessable value. The law is fairly settled on this issue inasmuch that if the clearances are made to their own sister concern and if other unit is eligible to avail cenvat credit, there cannot be any intent to evade central excise duty. As correctly pointed out by the learned Counsel, the issue is now covered by the judgment of the apex court in the case of Special Steel Ltd (supra) by dismissal of Revenue s civil appeal against Tribunal s order. In view of the revenue neutral situation, in the facts and circumstances of this case, it is held that the demand and the interest liabi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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