9911796707
TMI Blog2024 (3) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... facturer of High Carbon Ferro Chrome, High Carbon Ferro Manganese and Silico Manganese at their Jajpur Unit. The semi finished goods are stock transferred to their sister unit at Hisar, Haryana, where they are utilized captively in the manufacture of Stainless Steel Slab, Stainless Steel Hot Rolled Coil, Stainless Steel Cold Rolled Coils and Stainless Steel Plate/Sheet which are cleared as final products upon payment of duty. The period involved in the present dispute concerns April 2006 to March 2009. The short question in the present appeal revolves around the appellant's liability to pay interest on the goods cleared to their sister unit in terms of proviso to Rule 9 read with Rule 8 of the Valuation Rules, 2000, whereby the duty was lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said seeking of interest, the department vide its letter dated 04.11.2010 threatened to take recourse to coercive measures in case of non-compliance and vide letter dated 09.11.2010 confirmed an amount of interest totalling Rs.1,29,77,820/- for the period for which the aforesaid differential duty was paid by the appellant. 5. In appeal filed by the appellant before the Ld.Commissioner(Appeals) no respite was accorded and therefore the appellant is in appeal before us challenging the impugned order of the Ld.Commissioner(Appeals). 6. Amongst the various arguments taken by the appellant were - OIO was confirmed without giving any opportunity of being heard; Since method adopted by Appellant at the time of clearance is in compliance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verall there is no duty payable since for certain periods there was excess payment of duty which ought to have been adjusted against their duty allegedly short paid and therefore there was no requirement to pay duty thereon and obviously question of payment of interest in the matter would not therefore arise. 8. We have heard the two sides and also perused the case records. 9. The facts of the case are not in dispute. We find that the only argument that the Ld.Commissioner has been able to make out in his order is the proposition that "since the value of goods could not be determined at the time of clearance, the appellant could have opted for provisional assessment for delayed payment of duty, interest as automatic and is better consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in slew of cases have allowed the adjustment of duty in matters concerning involvement of CAS-4 valuation, provisional assessments, SSI exemptions etc.. For the sake of records, we may refer to the following case laws:- a. Hindalco Industries Ltd. v. CCE, Bhubaneswar [2023 (5) TMI 720 -CESTAT KOLKATA] b. Hindalco Industries Ltd. v. CCE, Rourkela [FO No.77236-77239/2023 dated 25.09.2023-CESTAT-KOL] c. SAIL, Alloys Steel Plant v. CCE, Bolpur [2023 (5) TMI 861-CESTAT-KOL] d. Pr. Commr. of CGST & CE v. Godrej Consumer Products Ltd. [2019 (367) ELT 985 (MP) e. Finolex Industries Ltd. v. Commissioner of Customs-Pune [2023 (5) TMI 306 -CESTAT MUMBAI] f. Jindal Steel & Power Ltd. v. CCE, Raipur-I [2016 (342) ELT 253 (Tri.-Del.)] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in the case of CCE & C, Vadodara-II v. Indeos Abs Ltd. [2010 (254) ELT 628 (Guj.)], in case the goods were cleared to their own sister concern, which is availing benefit of the Modvat Credit, hence the entire exercise is revenue neutral. Although the appellant paid differential duty later on, but same was available as Cenvat Credit to their sister unit is a revenue neutral situation, if appellant would have not paid differential duty that was not payable in terms of the above cited decisions. Therefore, as duty was not payable, the payment of interest does not arise in the case of revenue neutral situation. Further the case law relied upon by the Ld.AR for the department in the case of Indoworth (India) Ltd. (supra), is not appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & C, Vadodara-II v. Indeos Abs Ltd. [2010 (254) ELT 628 (Guj.)], in case the goods were cleared to their own sister concern, which is availing benefit of the Modvat Credit, hence the entire exercise is revenue neutral. Although the appellant paid differential duty later on, but same was available as Cenvat Credit to their sister unit is a revenue neutral situation, if appellant would have not paid differential duty that was not payable in terms of the above cited decisions. Therefore, as duty was not payable, the payment of interest does not arise in the case of revenue neutral situation. Further the case law relied upon by the Ld.AR for the department in the case of Indoworth (India) Ltd. (supra), is not applicable to the facts of the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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