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2019 (4) TMI 640 - CESTAT KOLKATAValuation - various goods manufactured by the appellant, but captively consumed for use within the factory as well as captive mines for various activities, such as, construction, repair and maintenance activities - Rule 8 of the Central Excise Valuation Rules, 2000 - time limitation - Held that:- The Larger Bench of the Tribunal in the case of Ispat Industries Ltd. [2007 (2) TMI 5 - CESTAT, MUMBAI], where it was held that the provisions of Rule 4 are in any case to be preferred over the provisions of Rule 8 not only for the reason that they occur first in the sequential order of the Valuation Rules but also for the reason that in a case where both the rules are applicable, the application of Rule 4 will lead to a determination of a value which will be more consistent and in accordance with the parent statutory provisions of Section 4 of the Central Excise Act, 1944. Thus, during the disputed period, the valuation is required to be adopted in terms of Rule 4 ibid, on the basis of value of clearances to independent buyers. Time Limitation - Held that:- It is on record that the appellant has kept Department informed about their proposal for captive clearance of goods manufactured for purposes of civil constructions, repair and maintenance etc.. They have done so by means of a letter in December, 2005 - the Department will not be justified in alleging suppression against the appellant and invoking extended period of limitation. As such, the demand raised by the show-cause notice dated 02.08.2006, is to be restricted, to normal period of time limit - The second show-cause notice dated 22.03.2007, is within time. There is no justification for imposition of penalty - penalty set aside. Appeal allowed in part.
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