Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 323 - AT - Central ExciseValuation - transaction value - Whether duty of Central Excise is payable on the Refinery Gate Price (RGP) paid by the Oil Marketing Companies (OMC) to the appellant or it is payable on the subsidized price at which the Oil Marketing Companies so sell the goods to SKO (Superior Kerosene Oil) under PDS and LPG (Liquid Petroleum Gas) (Domestic) to their consumers? Held that: - the transaction value would be the price, where above three elements/conditions are present or fulfilled. We find that above three elements are present in the case of the amount/the price paid by OMCs (other than the BPCL). The price which is charged by the appellant-KRL from the Oil Marketing Companies (other than the BPCL) is the price as per the provisions of Section 4(1) of the Central Excise Act, 1944. The price charged by the appellant - KRL from BPCL cannot be called as ‘transaction value’, when BPCL is related to the appellant as KRL is said to be the subsidiary company of the BPCL. - It is to be noted that the price being paid by the Oil Marketing Companies (other than BPCL) includes the terminal charges also. Therefore, for the purpose of Central Excise duty, the assessable value which is now called the ‘transaction value’ [after the amendment made in Section 4 of the Central Excise Act, 1944 by the FA (w.e.f. 1-7-2000)] is the price that is charged by the KRL from OMCs for the subject goods. Whether terminal charges being the amount collected by the appellant from the Oil Marketing Companies is to be included in the transaction value of SKO (PDS) and LPG (Domestic) for the purpose of assessment of Central Excise duty? - Held that: - the price or cost paid/received to/by an assessee or manufacturer (from independent buyer) constitutes the assessable value/transaction value for the purpose of levy of Central Excise duty. The Hon’ble Supreme Court in the case of C.C.E., Jaipur-II v. Super Synotex (India) Ltd. [2014 (3) TMI 42 - SUPREME COURT] observes that the price or cost paid to the manufacturer constitutes the assessable value on which Central Excise duty is payable - the words that gain signification are “actually paid”. Appeal dismissed - decided against appellant.
|