Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 731 - AT - Central ExciseDuty demand - undervaluation of the goods - appellants paid the duty on their own calculation and they have not followed the provisions of Rule 8 of Central Excise valuation (Determination of Price of Excisable Goods) Rule 2000 and CAS-4 in respect to clearance of the goods to their sister unit during the period from December 2001 to March 2006 - Held that:- Larger Bench of the Tribunal in the case of M/s Ispat Industries Ltd (2007 (2) TMI 5 - CESTAT, MUMBAI) held that transfer part of production to another plant of same assessee and balance production sold to independent buyers, Rule 8 could not be applicable and value could be determined by the assessee under Rule 4 of the Valuation i.e., transaction value. It has been held that the provision of Rule 4 are in any case to be preferred over the provisions of Rule 8 not only for the reason that they occur first in the consequential of the valuation Rules but also for the reason that in a case where both the Rules are applicable, the application of Rule 4 will be allowed to determine value which will be more consistent and in accordance with the parent statutory provisions of Section 4 of the Central Excise Act 1944. In the present case, there is no dispute that during the period 2003-04 to 2005-06 the appellant transferred the goods to their sister unit as well as to the independent buyers Demand of duty alongwith interest for the period 2003-04 to 2005-06 is set aside. The demand of duty for the period 2001-02 to 2002-03, the adjudicating Authority is directed to examine in the light of the decision in the case of M/s Bajaj Tempo Ltd (2004 (7) TMI 145 - CESTAT, MUMBAI) after giving adjustment of excess/short duty in accordance with law. The penalty is set aside - Decided partly in favour of assessee.
|