9911796707
TMI Blog2025 (3) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... ant's own case Steel Authority of India v. Commissioner of Central Excise & Service Tax, Ranchi I, [2025 (3) TMI 258 - CESTAT KOLKATA] pertaining to a different unit of the same assessee and concerning the same issue pertaining to valuation of inter-unit transfer of refractory material had held that no demand is sustainable since the issue is revenue neutral. The same proposition has been held by this Tribunal in the case of Hindalco Industries Ltd. v. Commissioner of Central Excise, Bhubaneswar-II [2023 (5) TMI 720 - CESTAT KOLKATA] where it was held that 'The Appellant has argued that the entire exercise is revenue neutral as the duty paid by them will be available as credit for their sister unit. We agree with this view of the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on payment of excise duty supplied refractory bricks and magnesia masses to units of SAIL as well as to independent customers. The price charged in both the cases were more or less same. The department had initiated investigation against the Appellant in 2012 regarding the manner of valuation of the final products cleared to SAIL. 2.1. A Show Cause Notice dated 04.08.2014 was issued by invoking the extended period of limitation, by alleging that the Appellant while stock transferring the goods to its related units, undervalued the same. The crux of the allegation in the underlying Show Cause Notice is that the excise duty paid by the Appellant under Section 4(1) (a) of the Excise Act was lower than the amount payable under Rule 8/9 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er factories of the Appellant are availing the credit of duty paid by the Appellant and utilizing the same for payment of duty on the final product cleared. Thus, the Appellant submits that the differential duty confirmed shall be available as credit to the Appellant's other factories/units. Hence, demand of differential duty is clearly revenue neutral. 3.1. The appellant further submitted that this Tribunal in the Appellant's own case Steel Authority of India v. Commissioner of Central Excise & Service Tax, Ranchi I, vide Final Order No. 75435/2025 in Excise Appeal No. 75523 of 2016 pertaining to a different unit of the same assessee and concerning the same issue pertaining to valuation of inter-unit transfer of refractory material had he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal No. 75523 of 2016 pertaining to a different unit of the same assessee and concerning the same issue pertaining to valuation of inter-unit transfer of refractory material had held that no demand is sustainable since the issue is revenue neutral. The relevant paragraph of the said decision is extracted below for ready reference - "3. The Ld. Counsel for the appellant submits that the entire excise if revenue neutral as the final products cleared from the Appellant's factory to their other sister unit, are used by the other factories in the manufacture of dutiable finished goods, which is cleared by them on payment of applicable Excise duty. Therefore, whatever duty is payable by the appellant, the same is entitled to take the cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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