9911796707
TMI Blog2016 (12) TMI 1453X X X X Extracts X X X X X X X X Extracts X X X X ..... or otherwise? - extended period of limitation. Held that: - It is undisputed that the product in question is cleared to their own sister concern and the sister concern is eligible to avail the cenvat credit of the duty paid by the appellant. If that be so, there cannot be any mens-rea attached to the clearances made by the appellants to the sister concern and discharge of duty by adopting a particular assessable value. The law is fairly settled on this issue inasmuch that if the clearances are made to their own sister concern and if other unit is eligible to avail cenvat credit, there cannot be any intent to evade central excise duty - In view of the revenue neutral situation, in the facts and circumstances of this case, it is held that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not a sale, hence appellant is required to discharge the duty liability on the value arrived at by considering the cost of production and profit margin. The period in dispute is from April 1999 to March 2003, hence the provisions of Section 4 of the Central Excise Act, 1944 as applicable for pre-and post 1.7.2000 needs to be considered, accordingly the Revenue authorities came to a conclusion that for captive consumption of the chemicals by a appellant's sister concern, it needs to be valued in accordance with the Valuation Rules which is based on the cost of raw materials plus the profit margin as per old Valuation Rules and the new Rules. It is the case of the Revenue that as per cost of production method, the assessable value of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 90 5,82,790 5 Imidachlorprid Tech April 2002 to March 2003 1,53,395 1,53,395 6 Ethion Technical April 1999 to March 2003 66,63,671 - Total 89,23,610 22,22,531 He would submit that the appellant is not contesting the duty liability on the products as indicated at serial number 1 to 5, as they have paid the duty along with interest. They are contesting only the imposition of penalty on these 5 products for which he would submit that the discharge of duty liability based upon the assessable value of the goods cleared to independent buyers was an understanding of the appellants which was in accordance with the law. As regards the product at serial number 6 above chart, he would submit that period in dispute is from April 1999 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and perused the records. 6. The dispute that has arisen for our consideration is whether the assessable value which has been considered by the appellants for the clearances made to their sister concern is correct or otherwise and whether the demand is untenable due to the revenue neutrality of the issue involved or otherwise. 7. As conceded by the learned Counsel, the amount of duty payable on the products at serial number 1 to 5 (as per the table reproduced herein before in paragraph 3) is upheld along with interest. 8. As regards the clearances of the product Ethion Technical, we find that the main argument of the learned counsel is that the period involved is from April 1999 to March 2002 and the demand has arisen on the ground of u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Technical. Accordingly the demand and interest liability is set aside. 9. As regards the penalty imposed by the adjudicating authority, we are of the view that appellant could have entertained a bone fide belief that they have to discharge the duty liability of the goods cleared to their sister concern, on the value of the clearances made to independent buyers. This bona fide view may have been entertained, as the Larger Bench of the Tribunal in the case of Ispat industries Ltd had held so. Since the issue is of interpretation, we find that there is no necessity to visit the appellant's with penalty for the duty liability discharged by them as recorded hereinabove. 10. In view of the facts and circumstances of the case in hand, the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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