9911796707
TMI Blog2024 (1) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... f the excess duty paid by Unit II cannot be denied. The excess duty happened to be paid because of the practical difficulties of arriving at the actual production cost at the time of clearance of goods. Further, the situation is completely revenue neutral. It also requires to be stated that when the duty has been paid by Unit-II as per the invoices, the credit cannot be denied by the department at the recipient s unit. Following the decisions in the appellant s own case for the period from April 2007 to September 2011, the demand and penalties cannot sustain and requires to be set aside. The impugned orders are set aside. The appeals are allowed. - MS. SULEKHA BEEVI C.S., MEMBER (JUDICIAL) AND MR. VASA SESHAGIRI RAO, MEMBER (TECH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actual cost of production of the castings as per CAS-4 statement prepared on the basis of the audited accounts of the appellant as certified by Chartered Accountant. It was thus noted by the department that the value adopted by the appellant for payment of duty when the goods are transferred to Unit-I was not based on 110% value of cost of production arrived at as per CAS-4 statement. This resulted in short payment of duty for some financial years and excess payment of duty for some financial years. The non-adoption of correct assessable value has thus resulted in short payment as well as excess payment of duty. The Unit-I availed credit on such duties. It appeared to department that by paying such excess duty, the appellant has transferre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o March 2012 3. C No.V/73/15/16/2013 Adjn. 01.05.2013 ACCE, Coimbatore April 2012 to June 2012 4. C No.V/73/15/23/2013 Adjn. 09.17.2013 ACCE, Coimbatore July 2012 to December 2012 5. The Ld. counsel submitted that the appellant has furnished details of the declared cost of production as well as the actual cost of production and it would show that the excess duty paid on rough castings which are stock transferred to Unit-I is slightly higher than 110% of the estimated cost of production during the disputed period. The authorities below have failed to appreciate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was reiterated by the Ld.A.R. 7. Heard both sides. The very same issue came up for consideration before the Tribunal in appellant's own case and vide decision reported in 2023 (7) TMI 429 CESTAT CHENNAI, the Tribunal has held that the credit availed by Unit-I on account of the excess duty paid by Unit II cannot be denied. The excess duty happened to be paid because of the practical difficulties of arriving at the actual production cost at the time of clearance of goods. Further, the situation is completely revenue neutral. It also requires to be stated that when the duty has been paid by Unit-II as per the invoices, the credit cannot be denied by the department at the recipient s unit. The Tribunal in the said decision observed as u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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