Relief for SAIL: CESTAT Sets Aside Excise Duty Demand on Inter-Unit Transfers Due to Revenue Neutrality

The CESTAT set aside an excise duty demand on inter-unit transfers made by SAIL (Steel Authority of India Limited), citing the principle of revenue neutrality. The tribunal found that the transfers of goods between different units of SAIL did not result in any actual revenue loss to the government, as the duty paid at one unit would have been available as credit to the receiving unit. Applying the concept of revenue neutrality, the CESTAT held that imposing excise duty on such inter-unit transfers was unwarranted. This decision provides relief to SAIL and clarifies the applicability of excise duty on internal transfers within the same company.