TMI Blog2019 (2) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... clearance from the appellant’s unit and freight upto the recipient unit is not required to be added - there is no justification for adding such amount for arriving at the differential duty. Valuation - PVC Waste - Rule 8 of Valuation Rules - Held that:- There is no infirmity in this stand since as per the decision of the Larger Bench of the Tribunal in the Ispat Industries [2007 (2) TMI 5 - CESTAT, MUMBAI], the valuation of the goods as per sale to independent buyer, may be adopted even in respect of clearance to sister unit. Revenue neutrality - Held that:- This is a case for revenue neutrality inasmuch as any differential duty paid by Diamond Harbour Unit will be available as cenvat credit by receiving unit. On the ground of revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , came to the conclusion that the valuation has not been properly adopted in accordance with the CAS-4 specification. Since the clearance of goods are to their own sister units, valuation is required to be done on the basis of Rule 11 read with Rules 5,8 9 of Central Excise Valuation (Determination of Value of Excisable Goods) Rules, 2000. After re-determining the value for such stock transfer, the Department proceeded to demand the differential duty amounting to ₹ 68,82,870/- by issuance of show-cause notice dated 05.05.2008. After conclusion of the adjudication proceedings, the lower appellate authority, by passing the impugned order, confirmed the demand for differential duty. In addition, he also imposed penalty equal to such di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be done on the basis of value adopted for clearance to independent buyers as decided by the Larger Bench of the Tribunal in the case of Ispat Industries Ltd. reported in 2007 (209) ELT 185 (Tri.- LB). (iv) The ld.C.A. submitted that the differential duty arising on the basis of CAS-4 Standards for most of the items and as per value adopted for clearance to independent unit, in respect of the PVC Waste, has been worked out totaling to ₹ 46,44,174/-. The liability to this extent has been admitted and paid by the appellant. (v) Finally, he submitted that the differential duty demand may not be maintainable in any case since, any differential duty paid at the end of the Diamond Harbour Unit, will be available as cenvat credit b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble for transfer of the goods from the Diamond Harbour Unit to their other sister units. We find no legal basis for addition of this freight amount. The goods are required to be valued at the time of clearance from the appellant s unit and freight upto the recipient unit is not required to be added. As such, we find that there is no justification for adding such amount for arriving at the differential duty. 8. In respect of the PVC Waste, the claim of the appellant is that the value is not required to be done on the basis of Rule 8 and CAS-4 Standard inasmuch as the value for clearance to independent buyers was available. We find no infirmity in this stand since as per the decision of the Larger Bench of the Tribunal in the Ispat Industr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9) E.L.T. 718 (Tri. - LB). 3. The Learned AR Shri S. Govindarajan reiterated the findings in the impugned order. He relied upon the decision of the Tribunal in the case of BOC India Ltd. v. Commissioner of Central Excise, Jamshedpur - 2004 (168) E.L.T. 478 and contended that when goods are transferred to sister unit, the valuation has to be under Rule 8 of Central Excise (Valuation) Rules and therefore it should be 115% of the cost of production. That therefore, the demand raised is legal and proper. 4. We have heard the submissions made by both sides. 5. On considering the fact that the goods are cleared to the sister unit and also the fact that the appellant is eligible for credit on the duty paid, the ent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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