2009 (5) TMI 747 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, KOLKATA, in the citation 2009 (5) TMI 747, heard an application for restoration of an appeal that was dismissed for lack of clearance from COD. The necessary clearance was subsequently produced, resulting in the order dismissing the appeal being recalled, and the appeal restored to its original status.

The applicant also filed an application for waiver of pre-deposit of duty amounting to Rs. 58,53,688 and an equal penalty. The dispute centered around the valuation of captively consumed goods, with the Revenue seeking to assess the goods as per the provisions of Rule 9 read with Rule 8 of Valuation Rules, 2000. The applicant argued that 99% of the goods manufactured were cleared by independent buyers, with the price at which the goods were sold to independent buyers being almost the same as that at which the goods were transferred to other units. This fact was specifically mentioned in the reply to the show cause notice.

The Tribunal found that since the goods were sold to independent buyers, the price of the goods was available and was almost the same as that at which the goods were transferred to other units. Consequently, the Tribunal found that the applicant had a strong case in their favor. As a result, the pre-deposit of duty and penalty were waived, and the recovery of the same was stayed. The stay petition was allowed, and the decision was pronounced and dictated in open court.