TMI Blog2012 (3) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... excise duty on cost basis in accordance with Section 4 of the Central Excise Act, 1944. Plea of the Department is that since M/s. Nalwa Steel Pvt. Ltd. falls within the definition of related party as defined under Section 4(3)(b)(i), the appellant ought to have assessed the excise duty payable as per Rule 8 of the Valuation Rules - prima facie the excise duty paid by the appellant in respect of goods sold to the sister concern on the basis of sale consideration as per Section 4(3)(b)(i) of the Central Excise Act cannot be faulted. Thus, we conclude that appellant has been able to make out a prima facie case justifying the waiver of pre-deposit of duty demand with interest and penalty - Stay granted. - E/2699/2011 - Stay Order No. 597/2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order-in-original confirming the demand which was rejected. 5. Learned Counsel for the appellant pressing for the waiver of the condition of pre-deposit has submitted that admittedly the appellant was also selling the goods produced by him in the open market besides the supplies made to M/s. Nalwa Steel Pvt. Ltd. Ld. Counsel contended that the goods supplied to M/s. Nalwa Steel Pvt. Ltd. at the same rate at which the goods were supplied in open market. Therefore, the appellant has rightly valued the supplies made to M/s. Nalwa Steel Pvt. Ltd. for the purpose of excise duty in accordance with Section 4 of the Central Excise Act, 1944. Ld. Counsel contended that Rule 8 of the Valuation Rules is not applicable in this case because the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Pvt. Ltd. falls within the definition of related party as defined under Section 4(3)(b)(i), the appellant ought to have assessed the excise duty payable as per Rule 8 of the Valuation Rules which reads thus:- Rule 8. Where the exciable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be (one hundred and ten per cent) of the cost of production or manufacture of such goods . 8. Bare reading of the above Rule would show that Rule 8 of Valuation Rules comes into play in cases of transfer of goods to a sister/related concern without consideration. Admittedly, this is not a case of no sale and it is also not the case of the Department ..... X X X X Extracts X X X X X X X X Extracts X X X X
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