Case Law Details
Indo Shell Cast Pvt. Ltd Vs commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that demand invoking extended period cannot be sustained on account of revenue-neutrality as duty charged by Unit-I would be taken as cenvat credit by Unit-II.
Facts- The appellant is Unit-II and is engaged in the manufacture of rough castings. These rough castings are supplied to Unit I for further processing into machined castings.
On verification of records, it was found that appellant (Unit II) transferred their products to Unit I on stock transfer basis by paying duty adopting the value based on their declared cost of production. The value so adopted by the appellant was found to vary with actual cost of production of the castings as per CAS 4 statement prepared on the basis of the audited accounts of the appellant as certified by Chartered Accountant.
It was noted by the department that the value adopted by the appellant for payment of duty was not based on 110% value cost of production arrived at as per the CAS 4 statement certified by the Chartered Accountant. This has resulted in short payment of duty for some financial years where there was excess payment of duty for some financial years.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
