9911796707
TMI Blog2003 (1) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... has been confirmed on the Bhopal Unit. Penalty of equal amount as the duty demand under Section 11AC of the Central Excise Act; another penalty of Rs. 20 lakhs under Rule 173Q of the Central Excise Rules, and demand for interest on the duty amount under Section 11AB of the same Act have also been imposed in respect of the goods manufactured in the Bhopal Unit and supplied to other units of the appellants company during the period April, 1995 to March, 1999. At the time of original clearance of the goods, they had been subjected to Central Excise Duty. The impugned order has held that the goods had been under valued at the time of their clearance resulting in short levy. The duty demand has been raised invoking the extended period of limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. The appellants have contended that, on the contrary, that method has only led to over-valuation of the goods. The appellants also submitted that there was periodical correspondence with the Excise Authorities on the question of valuation and that the assessee had pointed out that the price adopted for payment of duty compared favourably with the price of other manufacturers for identical and comparable goods. Reference in this context has been made specifically to Letter No. ETD/R.173C/ZUA/270, dated 26-11-1996 and ETD/Audit/259, dated 5-11-1985 etc. 2. With regard to the merits of the case, the appellants have contended that almost identical goods were being sold by them to unrelated parties and that the sale prices to those buyers co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred to inter-unit had a pinion and axle suspension tube mounting bolt. Except for the added presence of pinion and axle suspension tube mounting bolt, the Traction Motors were the same. Therefore, they were comparable goods for valuation and the value of one could be fixed after giving suitable adjustment for the value of additional item. Therefore, the appellants were right in holding that the goods were comparable and since their prices were comparable, there was no short levy. Rule 6(b) of Central Excise Valuation Rules relates to Captively Consumed Goods . The first method prescribed under the Rule is the adoption of the price of comparable goods with suitable adjustment. If that method was not available only, assessable value has to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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