The Appellate Tribunal addressed issues regarding the method of ...

Valuation of electrical motors for captive use clarified. No suppression of facts found. Time limitation and cum-duty benefit upheld.

Case Laws Central Excise

June 5, 2024

The Appellate Tribunal addressed issues regarding the method of valuation of electrical motors, whether to apply Rule 8 or Rule 4 of the Central Excise (Valuation) Rules, 2000. Following the precedent set by a Larger Bench decision, the Tribunal upheld the demand for valuation based on the spares market for all clearances, including captive consumption and warranty replacements. Regarding time limitation and cum-duty benefit, the Tribunal found no intentional suppression of facts, as the issue was not without controversy. The Tribunal noted that the original show-cause notice did not allege suppression, and since all assemblies were dutifully disclosed, willful suppression could not be claimed. The Tribunal upheld demands within the normal period, extended cum-duty benefit, set aside penalties under Section 11AC, and remanded the matter for duty recomputation.

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The Appellate Tribunal addressed issues regarding the method of ...

Valuation of electrical motors for captive use clarified. No suppression of facts found. Time limitation and cum-duty benefit upheld.

Case Laws Central Excise

June 5, 2024

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