TMI Blog2019 (7) TMI 781X X X X Extracts X X X X X X X X Extracts X X X X ..... sale to the buyers HELD THAT:- The issue decided in the case of M/S. VANDANA GLOBAL LIMITED VERSUS C.C.E., RAIPUR [2018 (11) TMI 969 - CESTAT NEW DELHI] where on identical facts it was held that The transaction value in the present case is the value at which the Silicon Manganese has been sold by the appellant at its factory gate, while transferring the unsold portion thereon to the Depot. There is no question of short payment of duty - appeal allowed - decided in favor of appellant. - Excise Appeal No. 51116 of 2017 - Final Order No. 50661/2019 - Dated:- 23-4-2019 - MR. JUSTICE DILIP GUPTA, PRESIDENT And MR. BIJAY KUMAR, MEMBER (TECHNICAL) Shri A.K. Prasad, Advocate - for the appellant Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... March, 2015. This short payment is stated to have arisen on account of the fact that the value of the finished goods i.e. Silico Manganese at the time of removal from their factory at Nagpur was less when compared with the value of same goods cleared from the depot to independent buyers at about the same time and thus the appellant appeared to have undervalued their finished goods transferred to their own depot for further clearance. The duties short paid was proposed to be recovered from the appellant under Section 11A(1)(a) of Central Excise Act, 1944 (hereinafter referred to as Act). Interest was also proposed to be recovered along with penalty under the provisions of Section 11 AC(1)(a) of the Act and Rule 25 of Central Excise Rules, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... servicing, warranty, commission or any other matter; but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods.] 12. Thus, it becomes clear that the value is a normal price that is the price at which such goods are ordinarily sold by the assessee to a buyer where the buyer is not the related persons and the price is the sole consideration as it was held by Hon ble Apex Court in the case of Tata Iron and Steel Co. Ltd. vs. Collector of Central Excise - AIR 2003 (SC) 144. The above discussed definitions clarifies that if the goods are not sold at the factory gate or at the warehouse but they are transferred by the assessee to its Depots or consignm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... removal of goods under assessment. 13. The bare perusal makes it clear that Rule 7 is invokable only in the case where the goods are not sold by the manufacturer/ assessee from the factory, which basically is the place of removal. It is in that case only that the transaction value has to be considered as the value at which the manufactured product is sold from the Depot to its buyer. That too, at or about the same time. As already discussed above, the Silicon Manganese is simultaneously sold from the factory/place of manufacture itself that too the major portion of the manufacture and it is only the part produced which has been shifted to Depot for further sale to the buyers. The question of invoking Rule 7 of Valuation Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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