“Tractor and Farm Equipment” CAS 4 Verification Mandate

The Chennai Bench of the CESTAT intervenes in a valuation dispute involving captive consumption, where the Revenue alleged non-compliance with CAS-4 and invoked extended limitation. 

The Tribunal finds that the core dispute is factual, whether the cost certificates relate to the relevant period, and cannot be resolved without verification. It sets aside the demand and remands the matter for fresh adjudication, while simultaneously curtailing the invocation of extended limitation due to absence of suppression. 

The ruling underscores that valuation disputes rooted in costing methodology must be evidence-driven, not assumption-based.