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2012 (7) TMI 417 - CESTAT, NEW DELHIEntitlement to refund claim - difference in rate at which excise duty was paid at the time of clearance and the rate on which the goods were sold from depot - Held that:- Considering Rule 7 of the Central Excise (Valuation) Rules where the goods are not sold by the assessee at the factory gate but are transferred to depot from where the excisable goods are to be sold the transaction value of such goods cleared from depot for the purpose of excise duty shall be the rate at which goods are sold from such depot on or about the same time and if such goods are not sold at or about the same time, at the time nearest to the time of removal of goods under assessment. the invoices supplied by the respondent regarding sale at the time nearest to the date and time for removal of the goods from factory to the depot normal transaction value of the goods was much more than the rate at which the excise duty was paid at the time of clearance of goods from the factory and the appellants submitted all the relevant documents including depot invoices which are indicative of the price at depot sale. Duty being advalorem is proportionately reduced with the fall of price at the depot. As a result the appellants have to bear the burden of excess duty paid on the ex-factory value of the goods that is higher than the actual transaction value - though Commissioner (Appeals) has correctly noted the provision of Rule 7 of Valuation Rules, he has not followed the same while deciding the appeal.
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