2007 (11) TMI 50 - AT - Central Excise

Scrap removed to sister unit on payment of duty on its transfer price Pursuant to proceeding by dept. assessee paid duty in terms of Rule 8, C.E.(Valuation) Rules Held that whatever duty paid was availed by its sister unit, hence no evasion involved Penalty is unjustified as revenue is neutral

Summary

The Appellate Tribunal CESTAT, Chennai allowed the appeal filed by M/s. Larsen & Toubro Ltd. regarding the removal of scrap to their sister unit, stating that no penalty was warranted as duty was paid and no evasion was involved. The stay application was dismissed.