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2013 (1) TMI 526 - AT - Central ExciseEvasion of duty – Transactional value – Under-valuation of goods - Whether or not by converting the actual volume of oil at room temperature to notional volume at 15ºC for the purpose of fixing the price amounts to undervaluing the product to evade excise duty - Appellant is engaged in the manufacture of petroleum products - Volume of the petroleum product undergo change with change in temperature - Appellant has supplied goods to other oil manufacturing companies by charging the price per litre based on notional volume by converting the volume at room temperature to the volume at 15ºC - Pay excise duty on transaction value of goods supplied at 15ºC. Held that:- For the purpose of calculating the excise duty chargeable, the price charged if it is sole consideration for the sale, would be the transaction value. The goods have been cleared on payment of excise duty as per the price declared in the invoices. It is not the case of the revenue that other manufacturing companies to whom the oil was supplied at the rate based on the volume at 15ºC are the related parties and invoice price was not the sole consideration for sale or the appellant/assessee has received any other additional consideration apart from the declared sale price. Thus, the appellant has rightly paid the excise duty as per transaction value in terms of Section 4 of the Central Excise Act and there is no justification for allegation of under-valuation of the goods with a view to evade excise duty - In favour of assessee
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