TMI Blog2014 (5) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 Accountants certificate cannot be accepted. In the absence of any evidence of actual use of exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer that they got two turnkey project works in Cuddapah and Nellore Districts and relevant contract price schedules were submitted, depicting the particulars of various aspects of the works to be executed under the said agreements. The appellants also informed that cost of each 15 KVA and 25 KVA DTR was Rs. 15,257/- and Rs. 15,757/- respectively 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 tur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cost of each transformer of 15 KVA and 25 KVA respectively at the rate of Rs. 30/- per litre. However, as per guaranteed technical specification in the relevant contract, a quantity of 70 litres and 85 litres transformer oil should have been utilized in the manufacture of 15 KVA and 25 KVA transformers respectively. After adding the oil and provisional 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 imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Accountants 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 Accountants 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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