2011 (11) TMI 569

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....own sister concern situated in Kim, Surat, on valuation based upon their understanding of the Central Excise Valuation Rules, i.e. on cost construction method during the period July 2000 to September 2004. Subsequently the lower authorities issued a show cause notice on 2-8-2005 directing the respondent to pay the differential duty on the value worked out on the basis of Rule 8 of the Central Excise (Valuation) Rules, 2000. The respondent-assessee contested the show cause notice before the adjudicating authority but at the same time paid up the differential duty before the issuance of show cause notice. Adjudicating authority appropriated the said amount, imposed penalties under Section 11AC and also demanded interest under Section 11AB of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is his submission that the confiscation of the goods were cleared on payment of duty to their sister concern. 1.     Commr. of C. Ex., Bangalore-III v. Sankala Industries [2010 (262) E.L.T. 893 (Tri.-Bang.)] 2.     Diamond Cables Ltd. v. Commr. of C.Ex., Vadodara [2009 (245) E.L.T. 856 (Tri.-Ahmd.)] 3.     Associated Drug Co. v. Commissioner of C. Ex., Bangalore [2009 (245) E.L.T. 252 (Tri.-Bang.)] 4.     Commissioner of Central Excise, Madurai. v. Janaki Packaging Pvt. Ltd. [2009 (248) E.L.T. 378 (Tri. - Chennai)] 5.     Commissioner of C.Ex., Indore v. Burman Laboratories Pvt. Ltd. [2004 (176) E.L.T. 375 (Tri. - Del.)] 6.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt. In the case in hand, it is undisputed that the respondent-assessee had discharged their duty liability on the machine parts cleared to their sister concern, based upon their understanding of the Central Excise Valuation Rules, they discharged the differential duty before the issuance of show cause notice and also filed returns with revenue authorities. In our considered view, there was no fraud, collusion or mis-statement for suppression of the fact as the goods which were cleared from the factories to their sister concerns, the recipient unit is eligible to avail Cenvat credit of the duty paid on such machinery parts. That being so, we are convinced that the learned Commissioner (Appeals) was correct in setting aside the penalties impo....