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2014 (2) TMI 211 - AT - Central ExciseValuation of goods - Whether OEM are Job Workers - Whether valuation of the goods manufactured by the appellants needs to be made under Rule 10A of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 or under Section 4(1)(a) of the Central Excise Act, 1944 read with Rule 6 of these Rules - Held that:- Transactions between the appellants and M/s. Symphony are held to be Sales transactions. Under Section 4(1) of the Central Excise Act, 1944 even if the price is not the sole consideration but still certain additions are required to be made then also Section 4(1)(b) of the Central Excise Act, 1944 read with Rule 6 of the Valuation Rules, 2000 has to be pressed into service when the transactions are one of Sales and parties are not ‘related persons’ or inter connected undertakings. In all the situations where price is not the sole considerations, it does not mean that invariably valuation has to be done as per Rule 10A of the Central Excise Valuation Rules. If any assessee manufacture final products, independently procuring inputs, paying for the same, utilizing his own manpower and sells the finished products to a purchaser based upon the price agreed between them, the said transaction will be covered by Section 4(1)(a) of the Central Excise Act, 1944. Trying to bring such type of transactions under provisions of Rule 10A of Valuation Rules, is not in consonance with the settled law, even if the finished products are sold at higher price by the buyer - Valuation of goods has been correctly determined by the appellants - Following decision of COMMISSIONER OF CENTRAL EXCISE, HYDERABAD Versus INNOCORP LTD. [2013 (9) TMI 382 - CESTAT BANGALORE] - Decided in favour of assessee.
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