2005 (10) TMI 163

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....de ingots of wrought aluminium of smaller sizes weigh 1 Kg to 20 Kg., whereas the rolling ingots are ingots of wrought aluminium weigh 2 to 5 tonnes. A number of commercial grade ingots would be melted to make rolling ingots. The rolling grade ingots cast at the Belgaum unit of the appellants are transferred completely to their unit at Taloja for making sheets. The above ingots are not sold by the appellants. They filed price declaration under Rule 6(b)(i) of the Central Excise Valuation Rules, 1975 declaring the value of their rolling ingots transferred to their Taloja unit on the basis of the price of Flat Ingots of Balco which were purchased by the appellants. As the flat ingot of Balco was less pure than the rolling ingot of the appella....

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....nium and as a result of the activity undertaken by the appellants only shape and size of the ingot changes. Reliance is placed on Tribunal's decision in the case of Mahavir Aluminium Ltd. v. CCE, Jaipur-I [2001 (131) E.L.T. 657]. The above decision is squarely applicable to the present case. (ii)     Rule 6(b)(i) is applicable to the case of the appellants since comparable goods and their value are available. BALCO's flat ingots are indeed comparable goods to INDAL's rolling ingots in view of the following reasons :- (a)      INDAL's rolling ingots are also known as 'Flat Ingots' in market parlance as evident from BALCO's letter dated 1-2-97. (b)      A photograp....

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....of the Tribunal in the case of CCE, Chandigarh v. AEE, Civil Workshop-Cum-Store [2000 (124) E.L.T. 895]. (iv)    The entire demand is revenue neutral. (v)     The entire Rolling Ingot was used as an input in the Taloja unit. Hence, whatever the duty paid is available as Modvat credit at the other unit. Hence the entire exercise is revenue neutral. (vi)    In view of the revenue neutrality, the appellants could not have had any intention to evade payment of duty. Hence penalty under Rule 173Q(1) is not sustainable. Further the appellants have filed the price lists from time to time and there is no allegation nor evidence of suppression of facts. 5. The learned JDR reiterated the p....