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2014 (4) TMI 1080 - CESTAT AHMEDABADValuation of goods - Whether the value considered by the appellant for discharging duty on the goods cleared to their sister concern; which is based on the value charged by them to independent buyers is correct or any other alternate valuation mode needs to be adopted - Held that:- Admittedly, the clearance made to their sister concern would fall under the provisions of Section 4(i)(b) of the Central Excise Act, 1944, as the clearance to their sister concern is not a sale. We find that for determining the correct value under Section 4(i)(b) of the Central Excise Act, 1944, provisions of Central Excise Valuation Rules, 2000 needs to be followed. In the said provisions, Rule 4 of the Valuation Rules clearly indicates that the value of excisable goods shall be based on such goods sold by the assessee. Value need to be adopted by the appellant on the goods which were cleared to their sister concern should be done under Rule 4 of the Valuation Rules, 2000 which is the correct position of law, inasmuch as the Central Excise Valuation Rules were framed, to determine the correct value of the goods cleared, which fall under the provisions of Section 4(i)(b) of the Central Excise Act, 1944. In the case in hand, since there is no dispute that the goods which were cleared by the appellant to their sister concern are the same which are cleared by them to the independent buyers, we do not see anything wrong in applying the assessable value of goods cleared by the appellant to the independent buyers for discharge of duty on the goods cleared to their sister concern. - impugned orders are liable to set aside - assessable value on which duty is discharged in case of independent buyers, will be the value for discharge of duty on clearances made to sister concerns. - Decided in favour of assessee.
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