2017 (7) TMI 983

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.... (Technical) For the Assessee : Shri M. Karthikeyan, Advocate For the Department : Shri K.P. Muralidharan, AC (AR) ORDER Per Bench Issue involved in these appeals being same, they were heard together and disposed by this common order. The parties herein are referred to as assessee and department for the sake of convenience. 2. The brief facts of the case are that assessee are eng....

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.... revealed that the value adopted for stock transfer was not based on CAS-4 read with Rule 8 of Central Excise Valuation Rules, 2000. SCNs were issued alleging undervaluation of the product while stock transferring to their sister concern and after due process of law, original authority confirmed the duty demand along with interest and imposed equal penalty. In appeal, the Commissioner (Appeals) up....

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....e the Hon'ble Apex Court had upheld the decision of the Tribunal wherein department appeal was dismissed on the ground of revenue-neutrality since the duty paid on the goods cleared to sister unit was available as modvat credit to it and the allegation that such clearances were made at a lesser value was not relevant and only of academic nature. The para of the judgement in Precot Mills Ltd. V....

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.... their own sister concern. This fact is not disputed by the revenue. If that be so, then the question of revenue neutrality arises, as it is an admitted fact that the transaction is mostly between the sister units. If that be so, the demand of duty on the appellant would be of no consequence as it would be revenue neutral. We find that all the case laws cited by the learned counsel support this pr....