Case Law Details
Steel Authority of India Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that payment of interest doesn’t arise in the case of revenue neutral situation and hence no interest is payable by the appellant.
Facts- The appellant is engaged in the activity of manufacturing various steel products, namely, billets, rounds, HT Bars, blooms, etc. to its independent customers as well as clearing the same to its job workers. The said goods were cleared by the appellant to the job-workers upon payment of excise duty on value determined as per Rule 4 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000.
The job-workers used the said goods for further manufacturing, by undertaking the processes of say-cutting, rolling, reeling, colour coding, etc. and supplied the job-worked goods back to the appellant on payment of duty.
A show-cause notice was issued to the Appellant, proposing differential duty for the period July 2000 to December 2004 on the ground that the assessable value of the goods cleared to job workers ought to be computed in terms of Rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 r/w Section 4(1)(b) of the Central Excise Act,1944.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
