2004 (7) TMI 145 - AT - Central Excise

Summary

Issues involved: Valuation of goods under new Valuation Rules u/s 1-7-2000, payment of differential duty, adjustment of duty amounts, refund claim.

In the judgment by the Appellate Tribunal CESTAT, Mumbai, the issue revolved around the valuation of goods cleared from one factory to another under the new Valuation Rules effective from 1-7-2000. The appellants initially cleared goods based on old rules but later re-determined values for consignments post 1-7-2000, paying a differential duty of Rs. 1,18,25,451. The department contended that the appellants should have claimed a refund instead of adjusting the amount paid. Citing previous Tribunal decisions, the Tribunal found no justification to sustain the demands confirmed by lower authorities, as the differential duty had been paid and credited at the recipient factory, leading to the appeal being allowed.

The Tribunal considered the department's argument that the appellants should have paid a higher differential duty and claimed a refund instead of adjusting the amount paid. However, based on previous Tribunal decisions allowing adjustment of excess and short payments of duty, and noting that the appellants had paid the net amount of differential duty and taken credit at the recipient factory accordingly, the Tribunal found no reason to uphold the demands confirmed by lower authorities. Consequently, the impugned orders were set aside, and the appeal was allowed.