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TMI Blog2015 (12) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... ds cleared from the factory - there was no reason to mis-declare the assessable value of the goods cleared to their own unit. The appellant was correct in stating that any duty liability discharged on the goods cleared to their own unit is eligible for CENVAT Credit by the unit at Lote Parshuram and there could not be any reason to mis-declare the price - impugned order to the extent it confirms the demand raised beyond the period of limitation is liable to be set aside and we do so. The demands raised within the period of limitation are liable to be confirmed with interest and we do so. Since the issue is of interpretation of law, penalty is not warranted on the appellant and accordingly, the penalty is set aside. - Decided in favour of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng authority after following the due process of law did not agree with the contentions raised and confirmed the demand and also imposed penalties. 3. Learned Counsel would draw our attention to the fact that the appellant had undisputedly cleared the products to their own unit situated elsewhere. It is his submission that though there was a clearance to independent buyers, they followed the law as laid down by the Larger Bench in the case of Ispat Industries Ltd. Vs. Commissioner of Central Excise, Raigad - 2007 (209) ELT 185 (Tri-LB). It is his further submission that even assuming that the value adopted by them could be incorrect, the question of revenue neutrality will arise and there was no intention to evade the duty as entire duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue which has been adopted by the appellant for the independent buyers. 5.2 Undisputed facts are that the intermediate products cleared from the appellant factory are consumed by their own unit in Lote Parshuram for manufacturing of final product on which duty liability is discharged. Also undisputed is that the unit of the appellant at Lote Parshuram has availed the CENVAT Credit of the duty paid on the goods cleared from the factory. 5.3 On the background of such a factual matrix, we find that the question of revenue neutrality is only question which needs to gone into. In the case in hand, we find that there was no reason to mis-declare the assessable value of the goods cleared to their own unit. The appellant was correct in statin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e intention on the part of the appellant, we set aside the penalty as well. The above said ratio will directly apply in the case in hand as there is nothing to record to show that the appellant had intention to mis-declare the value of the goods cleared to their own unit. 5.4 The judgment relied upon by the learned AR in the case of Star Industries (supra) is on the different facts, wherein the issue was regarding the CVD payable on the imported goods and having not discharged the CVD correctly, the appellant therein raised the issue of revenue neutrality. Since the facts involved in that case and in this case are different, we find that the judgment of Nirlon Ltd. (supra) is more akin to the facts in case. 5.5 We have disposed o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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