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TMI Blog2019 (5) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and obtain a CAS-4 certificate. The valuation has then to be done on the basis of CAS-4 certificate. Time limitation - revenue neutrality - HELD THAT:- The entire issue is revenue neutral. The appellant would be eligible for credit for the duty paid on the goods i.e., cleared to their sister Units. The Tribunal in the case of COMMISSIONER OF CENTRAL EXCISE, PUDUCHERRY VERSUS M/S. ANGLO FRENCH TEXTILES [ 2018 (8) TMI 896 - SC ORDER] had decided that in the case of revenue neutral situation, the demand cannot sustain. The duty demand is not based on provisions of law, and the demand cannot sustain - appeal allowed - decided in favor of appellant. - E/40220/2019 - FINAL ORDER NO. 40761/2019 - Dated:- 2-5-2019 - Smt. Sulekha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pointing a Cost Accountant for calculating the cost of production had arbitrarily determined the valuation of raw materials on the basis of the invoices issued by the appellant for clearance of their goods to sister Units. The appellant strongly pleads that CAS-4 certificate is not necessary for arriving at the assessable value of the goods that are cleared to the sister Units. Therefore, the appellant had not produced necessary certificate. In the absence of such certificate, the department cannot arbitrarily decide the value of the raw materials. In the appellant s own case for a different period, the Tribunal vide Final Order No.40374/2019, dated 21.02.2019 had occasion to analyse the very same issue and held that the demand of duty arri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.1 In the first instance, the appellants have been taking a stand that they are not governed by CAS-4 standards and are not required to produce CAS-4 certificates. On the other hand, we are also unable to fathom the method and manner of working of the differential duty liability adopted by department. If they were not satisfied with appellant s method of cost construction they should have themselves appointed a Cost Accountant as permitted in Central Excise law to ascertain the cost of production and worked out the assessable value as 115% / 110% of such cost, as the case may be, to demand any duty liability. Instead, a very discernible shortcut, not supported by any provision of law, was adopted, namely, adding 15% to their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r requirement to arrive at the assessable value of clearances under CAS-4, department could very well have appointed Cost Accountant as provided in the Central Excise Act, 1944 to ascertain whether the price adopted by them was correct or not. That was not done and instead, the instant SCN was issued, almost after three years after the initiation of correspondence between the department and the appellant, that too on the very dubious methodology of adding 15% to invoice prices as discussed above. 6. In the event, we are of the considered opinion that appellant will succeed both on the grounds of revenue-neutrality as well as on limitation. Appeal is therefore allowed with consequential benefits, if any, as per law, on thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o prepare the draft show-cause notice demanding duty on higher side. Hence, in the absence of CAS-4 certificate/details of the cost of the material used in the manufacture of the goods cleared to the assessees other Units, the value declared by the assessees in the invoices for the goods cleared for captive consumption has been taken as the cost of the material used. The overheads charges shown in the Balance Sheets are taken into account to arrive the percentage of overheads in respect of material used for the goods cleared for captive consumption. By adding this percentage of overheads to the material cost, the total cost of production is arrived for the subject goods, Thereafter, 15%/10% of the cost of production is added to arrive the C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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