TaxTMI 
TaxTMI 
2024 (3) TMI 488
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....ise, Customs & Service Tax, Bhubaneswar. 2. The appellant is a manufacturer of High Carbon Ferro Chrome, High Carbon Ferro Manganese and Silico Manganese at their Jajpur Unit. The semi finished goods are stock transferred to their sister unit at Hisar, Haryana, where they are utilized captively in the manufacture of Stainless Steel Slab, Stainless Steel Hot Rolled Coil, Stainless Steel Cold Rolled Coils and Stainless Steel Plate/Sheet which are cleared as final products upon payment of duty. The period involved in the present dispute concerns April 2006 to March 2009. The short question in the present appeal revolves around the appellant's liability to pay interest on the goods cleared to their sister unit in terms of proviso to Rule 9 r....
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....6,965/- by way of interest on the said sums. As the appellant disputed the said seeking of interest, the department vide its letter dated 04.11.2010 threatened to take recourse to coercive measures in case of non-compliance and vide letter dated 09.11.2010 confirmed an amount of interest totalling Rs.1,29,77,820/- for the period for which the aforesaid differential duty was paid by the appellant. 5. In appeal filed by the appellant before the Ld.Commissioner(Appeals) no respite was accorded and therefore the appellant is in appeal before us challenging the impugned order of the Ld.Commissioner(Appeals). 6. Amongst the various arguments taken by the appellant were - OIO was confirmed without giving any opportunity of being hea....
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.... in the manufacture of finished dutiable goods. Thus, it is their submission that for the relevant period, on the overall there is no duty payable since for certain periods there was excess payment of duty which ought to have been adjusted against their duty allegedly short paid and therefore there was no requirement to pay duty thereon and obviously question of payment of interest in the matter would not therefore arise. 8. We have heard the two sides and also perused the case records. 9. The facts of the case are not in dispute. We find that the only argument that the Ld.Commissioner has been able to make out in his order is the proposition that "since the value of goods could not be determined at the time of clearance, the appellan....
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....on of the stipulation of Article 265 of the Constitution. We also take note of the fact that various judicial authorities, in slew of cases have allowed the adjustment of duty in matters concerning involvement of CAS-4 valuation, provisional assessments, SSI exemptions etc.. For the sake of records, we may refer to the following case laws:- a. Hindalco Industries Ltd. v. CCE, Bhubaneswar [2023 (5) TMI 720 -CESTAT KOLKATA] b. Hindalco Industries Ltd. v. CCE, Rourkela [FO No.77236-77239/2023 dated 25.09.2023-CESTAT-KOL] c. SAIL, Alloys Steel Plant v. CCE, Bolpur [2023 (5) TMI 861-CESTAT-KOL] d. Pr. Commr. of CGST & CE v. Godrej Consumer Products Ltd. [2019 (367) ELT 985 (MP) e. Finolex Industries L....
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....arising out of supplementary invoices as differential duty was not payable, question of payment of interest would not arise. Relevant para of the judgement is quoted below:- "15. As held by the Hon'ble Gujarat High Court in the case of CCE & C, Vadodara-II v. Indeos Abs Ltd. [2010 (254) ELT 628 (Guj.)], in case the goods were cleared to their own sister concern, which is availing benefit of the Modvat Credit, hence the entire exercise is revenue neutral. Although the appellant paid differential duty later on, but same was available as Cenvat Credit to their sister unit is a revenue neutral situation, if appellant would have not paid differential duty that was not payable in terms of the above cited decisions. Therefore, as duty was....
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....tuation, we hold that no interest is payable by the appellant as held by this Tribunal in the case of Jai Balaji Industries Limited (supra) wherein it has been held as under : "15. As held by the Hon'ble Gujarat High Court in the case of CCE & C, Vadodara-II v. Indeos Abs Ltd. [2010 (254) ELT 628 (Guj.)], in case the goods were cleared to their own sister concern, which is availing benefit of the Modvat Credit, hence the entire exercise is revenue neutral. Although the appellant paid differential duty later on, but same was available as Cenvat Credit to their sister unit is a revenue neutral situation, if appellant would have not paid differential duty that was not payable in terms of the above cited decisions. Therefore, as duty w....