2025 (6) TMI 1804

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....ded rubber and synthetic rubber etc. Compounded rubber manufactured by the appellant is captively consumed within the factory for manufacture of pre-cured tread rubber and bonding gum. The said compounded rubber is also transferred to Pondicherry and Coimbatore units of the appellant for further use as raw material by the said factories for manufacture of similar final products. Final products manufactured by the appellant are cleared on payment of the appropriate duty. Alleging that the cost of main raw material i.e. natural rubber was not actually reflected in the production, proceedings were initiated to re-determine the value and adjudication authority as per the impugned order confirmed the demand. Aggrieved by said order, present appe....

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....erial. Learned counsel for the appellant also draws our attention to the detailed worksheet prepared by Cost Accountant for assessing short levy of duty and the consumption data of raw material for the relevant period as given below; Periods Assessable Value worked out during the Special Audit ( in Rs.) Duty Payable @16.32% (in Rs.) Duty Paid (in Rs.) Short Levy (in Rs.) 01.09.2004 to 31.03.2005 79758502 13016588 14573989 - 01.04.2005 to 31.03.2006 159465697 26024802 29073878 - 01.04.2006 to 31.08.2006 107298058 17511043 12242884 5268150 April 2006 to August 2006 Description of raw materials Opening Balance Receipt Total Issues Closing Balance ....

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....the detailed worksheet prepared by Cost Accountant clearly shows that the duty paid by the Appellant is actually higher than the duty which would have been paid if the calculation was taken as per CAS-4. 4. Learned Authorised Representative (AR) for the Revenue reiterated the findings in the impugned order and submits that the demand has been raised on account of the verification of records by the Audit wing of the Department where it was observed that the assessee was clearing goods on the basis of value determined in manner specified in Rule 8 of Central Excise Valuation Rules, 2000 by adopting the value in terms of CAS-4 drawn with effect from 20.09.2004. The main factor which influences determination of assessable value of compound r....

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....nits. 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 proposition" 6. Learned Counsel further submits that without prejudice to the above submissions and without admitting, if it is believed that the alleged differential duty was payable on goods cleared for captive consumption by the Appellant to their sister units, the said sister units would have been entitled to avail CENVAT credit of the same thereby rendering the whole situation as revenue neutral. Further, learned counsel for the Appellant relies upon Nirlon Ltd Vs. Commissioner of CE, Mumbai -2015 (320) E.L.T. 22 (SC), wherein the Hon'ble Supr....