https://www.taxtmi.com/caselaws?id=54776 For captive transfer of goods to a sister unit, valuation under Rule 6(b) of the Central Excise Valuation Rules, 1975 must be made under clause (i) where comparable goods are available and suitable adjustments can be made for differences in characteristics. Here, comparable flat ingots were available, purity adjustment had already been applied, and the goods were similar in dimensions and use, so recourse to clause (ii) was unwarranted. Penalty was also held unsustainable because duty payable on clearance would be available as Modvat credit in the sister unit, making the transaction revenue neutral and negating any inference of intent to evade duty. en-us Thu, 06 Oct 2005 00:00:00 +0530 Fri, 22 Oct 2010 10:19:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54776 For captive transfer of goods to a sister unit, valuation under Rule 6(b) of the Central Excise Valuation Rules, 1975 must be made under clause (i) where comparable goods are available and suitable adjustments can be made for differences in characteristics. Here, comparable flat ingots were available, purity adjustment had already been applied, and the goods were similar in dimensions and use, so recourse to clause (ii) was unwarranted. Penalty was also held unsustainable because duty payable on clearance would be available as Modvat credit in the sister unit, making the transaction revenue neutral and negating any inference of intent to evade duty. Case-Laws Central Excise Thu, 06 Oct 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54776