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2021 (11) TMI 337 - CESTAT KOLKATALevy of penalty - Area based exemption - allegation of incorrect valuation of final products cleared to related parties - duty amount alongwith interest was confirmed and penalty imposed for not valuing the final products under Rule 8 read with Rule 9 of the Central Excise Valuation Rules, i.e. cost plus 10%, as was relevant during the material period. - HELD THAT:- the assessee has not valued the goods in compliance with the Valuation Rules. The appellant has contended that they have cleared the goods on the basis of prevailing market prices. However, no evidence has been produced to substantiate their claim of having cleared the goods to the related parties on prevailing market prices. Moreover, in the adjudication proceedings, they have not disputed that manner of computation adopted by the Central Excise Department to arrive at the value as per the Rules, as appearing in page No. 26 to 40 of the appeal Paper Book which forms part of the SCN. No effort was ever made to show that the prices charged to the related party were closely approximate to the prices charged to independent parties. Further, there is a charge against the assessee that they deliberately over-valued the goods cleared to related parties in attempt to obtain higher refund which is the subject matter of recovery in the impugned demand order. At the same time, they also indulged in undervaluation as per their convenience, to short pay the duty amount which has not been rebutted by submitting the prices charged to independent parties. Admittedly, when there is no blanket refund in view of the amending Notification dated 27.03.2008, there is no case of complete revenue neutrality and hence, does not advance the case of the appellant assessee to plead for waiver of penalty in the given factual matrix of the case. Levy of penalty confirmed.
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