2011 (3) TMI 1206 - AT - Central Excise

Demand of duty, interest and penalty - Goods cleared from factory to another unit for captive consumption on stock transfer basis - contention of the department is that the appellant has not determined assessable value as per Section 4(1)(b) of the Central Excise Act, 1944 r.w.r. 6(b)(ii) of the Central Excise Valuation Rules, 1975 - Held that - As appellants supplied the cost data supported by Chartered Accountant s certificate it needs to be examined, order set aside and appeal allowed by way of remand

Summary

Issues:
Appeal against confirmed duty demand, determination of assessable value, availability of credit, examination of cost data for specific periods, remand for further examination by adjudicating authority.

The appellants appealed against an order confirming duty demand, interest, and penalties. The case involved two factories where goods were transferred from one to the other on a stock transfer basis. The department alleged that the assessable value was not determined correctly, leading to short-payment of duty. The appellants argued that they provided cost data for certain periods, making the duty demand unsustainable. They also claimed revenue neutrality as the duty paid by one unit was available as credit to the other. The Departmental Representative contended that goods were cleared at lower values, justifying the confirmed demand.

After hearing both parties, the Tribunal decided to remand the case for further examination. The appellants had submitted cost data and a Chartered Accountant's certificate for specific periods, but these were not considered in the previous orders. The Tribunal found it necessary for the adjudicating authority to review the cost data for those periods and make a decision accordingly. The matter was to be sent back for a fresh examination of the dispute, giving the appellants a fair opportunity to present their case.

In conclusion, the impugned order was set aside, and the appeal was allowed by way of remand. The adjudicating authority was directed to re-examine the cost data provided by the appellants for the relevant periods and make a decision in accordance with the law. The stay application was also disposed of accordingly.