TMI Blog2014 (3) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... and mis-declaration and proposing to revise the assessable value and demand of differential duty with interest and imposition of penalty as above. We find that what the department has done is to add the freight element from the factory gate to the sites in respect of transformers by invoking Rule 7 read with Rule 11 of the Central Excise Valuation Rules and also calculate the assessable value on the basis of transformer oil requirement indicated in the contract and adopt the one whichever is higher. There is no finding or evidence to show that actual quantum of oil used was higher than what was indicated in the CAS-4 and why the Chartered Accountant’s certificate cannot be accepted. Important statutory aspects regarding limitation as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y for the purpose of turnkey projects in both the operation circles of Cuddapah and Nellore Districts. The appellants also submitted the cost structure sheets enlisting therein, various elements forming part of the cost in respect of both 15 KVA and 25 KVA transformers. Verification of the relevant Central Excise invoices of the appellants pertaining to the transformers cleared for the purpose of turnkey project in Nellore Operation Circle revealed that they had adopted the same prices as indicated in the said cost structure sheets, i.e. Rs. 15,257/- and Rs. 15,757/- for 15 KVA and 25 KVA DTRs respectively, for the purpose of self assessed Central Excise duty. As there was doubt, the appellant was asked to furnish the cost structure coverin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visional profit and finding the value still less than the value arrived under Rules 7 11 of the Valuation Rules, the higher assessable value arrived at under the former method was taken into account and demand for differential duty in respect of two turn key projects for transformer amounting to Rs. 1,02,849/- and Rs. 4,54,156/- with interest was confirmed and penalty equal to the duty was also imposed. The appeals filed before the Commissioner (Appeals) have been rejected and hence the matter is before us. 3. Nobody was present on behalf of the appellant. However, we took note of the fact that the matter had come up on board several time before the Tribunal and the date of hearing today was given in the presence of advocate on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igher than what was indicated in the CAS-4 and why the Chartered Accountant s certificate cannot be accepted. In the absence of any evidence of actual use of excess transformer oil and in the absence of any finding as to why Chartered Accountant s certificate cannot be accepted, stand taken by the Revenue to arrive at the assessable value by including the quantum of oil indicated as required in the contract cannot be sustained. Even if it is for captive consumption or use, there is no basis to include the freight element from the factory to site. There is no indication as to why the factory gate cannot be considered incurred from the place of removal in this case and why the freight involved in transportation of transformers from the factor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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