Case Law Details
Lakshmi Machine Works Ltd Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that the appellant was eligible to clear rough castings to their sister concern on payment of duty on the assessable value based on comparable prices of goods cleared by them to non-related buyers. Provisions of rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (CVR 2000) applicable only w.e.f. 01.12.2003 after amendment by notification no. 14/2012-CE (NT) dated 22.12.2003.
Facts- The appellant factory consists of two units, viz. Foundry Division and Machine Tool Division. Prior to 1.9.2001, both these units were holding separate central excise registration certificates. During the period April 1998 to March 2002, the Foundry Division manufactured and cleared rough castings to their sister concern on payment of duty on the assessable value declared in Form Annexure – II under Rule 173C to the Central Excise Department. It appeared that the value of goods was not determined correctly.
Accordingly, a Show Cause Notice was issued proposing to demand differential duty of Rs.14,44,809/- for the period from 1998 – 99 to 2001 – 02 by invoking first Proviso to Section 11A(1) of the Central Excise Act, 1944 along with interest and penalty.
Adjudicating Authority confirmed the demand to the tune of Rs.12,34,678/- along with appropriate interest besides imposing equal penalty for the contravention. Commissioner (Appeals) rejected the appeal. Being aggrieved, the present appeal is filed.
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