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TMI Blog2023 (10) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... the Deputy Director (Cost) has arrived at the figures are also not given; the same are not even explained in the show-cause notice - This is a serious case of violation of principles of natural justice as the appellants have been denied an opportunity to analyse or counter the findings of the Deputy Director (Cost). Further, ongoing through the show-cause notice, it is found that no reasonable justification has been given to invoke the Valuation Rules except for making a bland averment that the appellants are clearing goods to their sister concerns at a lower price. The variation in the quality and thickness of the goods supplied to the sister concerns has not been distinctly brought out; no chemical analysis of the products has been ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came to the conclusion that the appellant is clearing part of the final goods to their sister concerns and therefore, the valuation of the goods removed to the sister concerns should be, on the basis of cost plus 10%,in terms of Rule 8 of Central Excise (Valuation) Rules, 2000. A show-cause notice dated 13.09.2010 demanding duty of Rs.43,52,529/- along with penalty and interest was issued to the appellants; the show-cause notice was adjudicated vide OIO dated 23.09.2011 wherein duty of Rs.29,17,703/- was confirmed under the extended period along with equal penalty under Section 11AC of the Central Excise Act, 1944. 3. Shri Sudeep Singh Bhangoo, learned Counsel for the appellant, submits that the price at which they clear their HR Coils ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducted, the prices at which HR Coils are cleared to their sister concerns are comparable to or more than the value indicated in the report and therefore, there was no scope for demand of differential duty. He submits alsothat the entire issue is revenue neutral as their sister concern would any way be eligible to avail CENVAT credit even if duty paid is at a higher price. He relies on the following cases: Special Steel Ltd.- 2015 (329) ELT 449 (Tri. Mumbai) upheld by the Hon ble Supreme Court in 2016 (334) ELT A123 (SC). Akash Optifibre Ltd.- 2010 (261) ELT 404 (Tri. Del.). Atul Ltd.- 2009 (237) ELT 287 (Tri. Ahmd.) Crustal Quinone (P) Ltd.- 2009 (233) ELT 499 (Tri. Ahmd.). 4. Shri Harish Kapoor, learned Authorize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appellants; the working papers on the basis of which the Deputy Director (Cost) has arrived at the figures are also not given; the same are not even explained in the show-cause notice. We find that this is a serious case of violation of principles of natural justice as the appellants have been denied an opportunity to analyse or counter the findings of the Deputy Director (Cost). 7. Further, ongoing through the show-cause notice, we find that no reasonable justification has been given to invoke the Valuation Rules except for making a bland averment that the appellants are clearing goods to their sister concerns at a lower price. The variation in the quality and thickness of the goods supplied to the sister concerns has not been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... direct expenses to be included in the calculation of the assessable value. We find that there is no dispute on the addition of job charges as far as they relate to the job charges incurred in the manufacture of the goods in question. The appellant submits that these are charges earned by them while performing job work for other manufacturers. We fail to understand as to how the expenditure or income unrelated to the goods in question can be included or subtracted for the purpose of arriving at the assessable value. As the report of the Deputy Director (Cost) was not made available, it cannot be understood as to how the Deputy Director (Cost) included the job charges in the assessable value. In the absence of any definitive explanation by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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