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2014 (8) TMI 137 - AT - Central ExciseDemand of differential duty - Determination of correct assessable value - excisable goods cleared by M/s. RIL to their own units situated elsewhere in the country - clearances made to assessee's own unit by determining value based on the assessable value of the same products cleared to independent buyers - Held that:- application of Rule 4 is being disputed by the Revenue not on the ground that the said rule is inapplicable to the present case but on the ground that a more specific provision in Rule 8 is available to enable determination of the assessable value. As discussed above, the provisions of Rule 8, in our view, are not applicable to the present case and therefore the value determined by the assessee under Rule 4 deserves acceptance. Even if both the rules, i.e. Rule 4 and Rule 8, were applicable, it would only be logical to read and apply the various rules in the Central Excise Valuation Rules in a sequential manner. Though the Central Excise Valuation Rules, 2000 do not specifically prescribe such sequential application of various rules, the same, in our view, is the only reasonable way to read these rules. Any other interpretation would only lead to confusion and chaos. Since the applicability of Rule 4 is not really in dispute, there was no need to look further and regardless of the applicability or otherwise of Rule 8, the assessable value should have been determined in terms of Rule 4 of the Valuation Rules. Since the issue of valuation of the goods which are cleared for captive consumption to assessee s own units is now settled by the Gangotri Electrocastings Ltd. Vs. CCE & ST, Patna (2012 (7) TMI 321 - CESTAT, KOLKATA) and Ferro Alloys Corporation Ltd. Vs. CCE & ST, Bhubaneshwar-I (2011 (12) TMI 438 - CESTAT KOLKATA); therefore, impugned order is unsustainable and is liable to be set aside - On perusal of the said judgment / order, we find that their Lordships was disposing a writ petition filed by the petitioner therein, for declaring Rule 8 of the Central Excise Valuation (Determination of price of excisable goods) Rules, 2000 as ultra vires of Section 4, Section 37 of the Central Excise Act, 1944 and also ultra vires of Article 14 and 19(1)(g) and Articles 265 and 300-A of the Constitution of India. The said writ petition was dismissed by their Lordships stating the obvious that the said rules were as per the provisions of the Central Excise Act, 1944 and value needs to be determined in the case of captive consumption in accordance with those rules - Decided in favour of assessee.
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