2016 (12) TMI 1453

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.... as their own sister concern on payment of duty. While clearing the chemicals to independent buyers, they are discharging the duty liability based on the transaction value or the normal price as the case may be, while clearing the goods to the sister concern they are discharging the duty on the same price. It is a case of the Revenue that while clearing the goods to the sister concern, it is not a sale, hence appellant is required to discharge the duty liability on the value arrived at by considering the cost of production and profit margin. The period in dispute is from April 1999 to March 2003, hence the provisions of Section 4 of the Central Excise Act, 1944 as applicable for pre-and post 1.7.2000 needs to be considered, accordingly the ....

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.... reproduced. Sl. No Product Period Demand (Rs.) Amount paid (Rs.) 1 Metribuzin Technical April 1999 to March 2001 10,07,795 10,07,795 2 Pendimethalin 33% April 1999 to March 2000 27,444 -     April 2002 to March 2003 2,98,112 2,98,112 3 4DN July 2000 to March 2001 1,80,503 1,80,503 4 Pendimethalin 30% April 2001 to March 2002 9,900 -     April 2002 to March 2003 5,82,790 5,82,790 5 Imidachlorprid Tech April 2002 to March 2003 1,53,395 1,53,395 6 Ethion Technical April 1999 to March 2003 66,63,671 -   Total   89,23,610 22,22,531 He would submit that the appellan....

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....r the clearances made to their own sister concern for discharge of duty liability, hence penalties imposed on them needs to be set aside. 4. Learned departmental representative, while reiterating the findings recorded by the adjudicating authority, would submit that the cost of production of the goods were more than the value applied to independent buyers. It is his submission that this factual aspect is not disputed by the appellants. He would submit that there is evasion of duty hence penalty was correctly imposed. 5. Heard both sides and perused the records. 6. The dispute that has arisen for our consideration is whether the assessable value which has been considered by the appellants for the clearances made to their sister conc....