2025 (6) TMI 840

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....e of capacitors, APFC panels and reactors falling under Chapter Heading 85 of Central Excise Tariff Act, 1985. During the course of the audit of the records by the Department for the period August 2009 to August 2010, it was noticed that the appellant had cleared excisable goods such as Capacitors Cells, Enclosure to Capacitors Cells etc. to their other unit on 'Stock Transfer basis' which are used in the manufacture of their finished goods in the said factory. The appellant had discharged duty on 110% of the value of the semi-finished goods cleared on 'Stock Transfer basis' to their Unit-II. The semi-finished goods cleared by the appellant to their Unit-II were captively consumed for the manufacture of the finished goods. During the course....

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....rds for the period from August 2009 to August 2011, it was noticed by the Department that valuation adopted for stock transferred excisable goods was not in accordance with Section 4(1)(b) of the Central Excise Act, 1944 read with Rule 8 of Central Excise (Valuation) Rules, 2000. Accordingly, the appellants had calculated the assessable value and paid duty of Rs. 45,00,446/- for the period from October 2010 to November 2011 by adding 10% of the invoice value on the cost of the manufacture transferred from the Unit-I to Unit-II and accordingly informed the Department. Further adopting the CAS-4 method of valuation, they have paid a further amount of Rs. 65,71,753/- for the said period and informed the Department accordingly. Also, the appell....

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....d AR for the Revenue reiterated the findings of the learned Commissioner (Appeals). 5. Heard both sides and perused the records. 6. The short issue involved in the present appeal for consideration is whether the differential duty amount of Rs. 6,21,940/- along with interest and penalty is payable by the appellant. It is not in dispute that the appellant had commenced stock transfer of the goods from their Unit-I to Unit-II initially discharging excise duty computing the assessable value of the goods on the basis of actual cost of raw-materials incurred for manufacture of the semi-finished goods, but later with the insistence of the Department, discharged the duty calculating the assessable value as per Rule 8 of the Central Excise (Valuat....