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2023 (6) TMI 643 - AT - Central ExciseValuation - goods cleared from factory to depot on stock transfer basis and eventually sold therefrom - no prevailing depot price on the date of clearance from factory for the purposes of application of Rule 7 of the valuation Rules and neither was there any ex-factory selling price - violation of Rule 7 and 9 of Valuation Rules - HELD THAT:- The Appellant has cleared the goods from factory to depot on stock transfer basis. Since there was no prevailing depot price on the date of clearance from factory, they could not adopt the depot price for the purposes of payment of duty as provided under Rule 7 of the valuation Rules, 2000. The next best option available to the assesse was to adopt the exfactory selling price, if any, available. But, there was no ex-factory selling price available on the date of clearance from the factory to depot. We observe that the adjudicating authority also accepts in the impugned order that no price available as provided in Rule 7 of the Valuation Rules. Since no other value available on the date of clearance from the factory to depot, the Appellant discharged duty on the basis of import parity price as published by Platts, an international organization which notifies the prices of petrochemical products worldwide. The department contested this value and demanded duty on the basis of the ultimate selling price of the goods from the depot. The Appellant stated that there is no provision in the Valuation Rules which permits chasing the selling price of the said goods from the depot and pay duty on the basis of the ultimate selling price from the depot. When there is no other price available at the time of clearance of the goods from the factory to depot on stock transfer basis, the only way available is to determine the assessable value based on the best judgment method. In this case, the Appellant discharged duty on the basis of import parity price as published by Platts, an international organization which notifies the prices of petrochemical products worldwide - when there is no other price available, the adoption of import parity price as published by Platts by the Appellant cannot be faulted. The department has adopted the ultimate selling price of the goods from the depot. It is observed that there is no provision in the Valuation Rules which permits chasing the selling price of the said goods from the depot and pay duty on the basis of the ultimate selling price from the depot. The demand confirmed in the impugned order on the basis of the ultimate selling price of the goods from the depot is not sustainable - Appeal allowed.
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