2018 (10) TMI 1470

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....Santhana Gopalan, Advocate For the Appellant Shri A. Cletus, ADC (AR) For the Respondent ORDER Per Bench The brief facts of the case are that the appellants contravened provisions of Rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 and Section 4 of the Central Excise Act, 1944 read with Board's Circular No.692/08/2003-CX dt. 13.02.2003, inasmuc....

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....quantity of semi-finished chains to their sister units in Waluj and Chakan in Maharashtra on payment of excise duty as per Rule 8 of Valuation Rules. While determining the cost of production, the material cost and other elements were arrived on actuals. However, the administrative overheads are taken based upon the preceding financial year since the overheads for the current year would be availabl....

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....unsel submitted that even if the appellants had paid the increased duty, the entire exercise is revenue-neutral since the clearances are made to their sister units in Maharashtra. The assessee unit would be able to eligible to take cenvat credit of the duty paid and therefore the entire exercise is revenue-neutral and there is no loss to the Government and no gain to the appellant. He placed relia....

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.... and reiterates the findings in the impugned order. 4. Heard both sides. 5. The demand is raised for the reason that the appellants have not adopted the actual overheads for the respective financial years. The main argument put forward by the counsel for the appellant is that entire exercise is revenue-neutral and the demand is also time-barred. Undisputedly, the clearances are made to their....