2007 (9) TMI 108

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....riod. During the period of dispute, they had cleared aluminium waste and scrap to their sister unit as well as to independent buyers. The price at which the scrap was supplied to the sister unit was Rs. 26,086/- per MT and that at which the scrap was supplied to M/s. Sase Ancillary Castings Ltd. (independent buyers) was Rs. 41,162/- per MT as alleged in the SCN. The department, on this basis, alle....

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....ch. The present appeal is against the appellate Commissioner's decision. 2. Ld. counsel has challenged the impugned order mainly on two grounds. Firstly, it is his submission that the lower appellate authority traveled beyond the scope of the SCN by adopting a method, not proposed in the notice, for determining the assessable value of the subject goods. Secondly, it is submitted that any duty i....

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....was available as MODVAT credit to themselves. We have heard ld. SDR also, who has reiterated the findings of the Commissioner (Appeals). 3. After considering the submissions, we have found that the proposal in the SCN was to demand differential duty on the scrap cleared by the respondents to their sister unit during the period of dispute fixing its price at a higher levels on the basis of the p....

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....SCN, as rightly pointed out by ld. counsel. In the case of Ballarpur Industries (supra), the Hon'ble Supreme Court observed that SCN was the foundation in the matter of levy and recovery of duty, penalty and interest, and it was, accordingly, held that a rule which had not been invoked in the SCN was not to be invoked by the Commissioner. 4. The plea of revenue-neutrality is also well-founded. ....