Differential duty demand unsustainable if entire exercise was revenue neutral

Hindalco Industries Limited Vs Commissioner of Central Excise (CESTAT Kolkata) CESTAT Kolkata held that demanding duty on the short payment, ignoring the excess payment is bad in law. Accordingly, demand of differential duty unsustainable as the entire exercise is revenue neutral. Facts- During the period April 2009 to March 2010, the Hirakud Unit cleared aluminium ingots and coils to the said sister units upon payment of excise duty, on the basis of 110% of the estimated cost of production (as per the previous year’s CAS-4 statements adjusted for inflation and forecast of price increase in ...