2007 (6) TMI 468 - AT - Central Excise

Summary

Issues involved: Valuation of goods transferred to job workers without filing Rule 173C declaration.

Summary:

The appeal was filed by the Revenue against the order passed by the Commissioner (Appeals) regarding the valuation of goods transferred by the respondent to job workers without filing Rule 173C declaration. The Commissioner (Appeals) observed that the appellant had cleared goods as stock transfer to job workers, mainly group companies, without revealing this method to the department. The adjudicating authority confirmed the demand based on alleged undervaluation when goods were cleared to job workers compared to unrelated job workers. The Commissioner (Appeals) noted that there was no evidence of flow back of money or any extra commercial consideration, and different values for similar goods to job workers were not incorrect under Section 4 of the Central Excise Act, 1944. The Revenue failed to provide evidence to show any flow of additional commercial consideration to the respondent.

The Tribunal upheld the view of the Commissioner (Appeals) and found no infirmity in the decision. The demand was made for the period from April 1995 to October 1999, and it was noted that the job workers were availing Modvat credit on duty paid goods, making the situation revenue neutral. It was concluded that there was no suppression on the part of the respondent with an intention to evade duty payment. Therefore, the Tribunal rejected the Revenue's appeal based on the discussions and findings presented.

*(Dictated and pronounced in Court)*