https://www.taxtmi.com/caselaws?id=194076 Inter-unit transfers valued under the Central Excise valuation rules may not attract interest or penalty where the differential duty is voluntarily paid before the show cause notice and the recipient sister unit has already taken Cenvat credit. The stated reasoning is that, in the absence of any dispute over credit availment and without proof of mala fide undervaluation, interest liability does not arise and penalty is not sustainable. The operative legal point is that prompt payment of differential duty, coupled with no dishonest intent, removes the basis for consequential interest and penal action in such clearance disputes. en-us Fri, 20 Nov 2015 00:00:00 +0530 Tue, 29 Aug 2017 09:40:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=194076 Inter-unit transfers valued under the Central Excise valuation rules may not attract interest or penalty where the differential duty is voluntarily paid before the show cause notice and the recipient sister unit has already taken Cenvat credit. The stated reasoning is that, in the absence of any dispute over credit availment and without proof of mala fide undervaluation, interest liability does not arise and penalty is not sustainable. The operative legal point is that prompt payment of differential duty, coupled with no dishonest intent, removes the basis for consequential interest and penal action in such clearance disputes. Case-Laws Central Excise Fri, 20 Nov 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=194076