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2016 (1) TMI 765 - AT - Central ExciseValuation - stock transfer - Differential duty on clearances to their Faridabad unit - comparable price - Held that:- The appellants are selling the gases to different set of buyers while comparing the price for valuation purposes, as already stated, it is necessary to have comparable volume and proximity of time and comparable class of buyers. Revenue's stand that the highest of value is a comparable price is not supported by the provisions of law. We find that while the value adopted is to be based on comparable value there is no sanction to take highest of the independent sale price for such purpose. Accordingly, we hold that the price of gases sold to independent buyers of similar class should be considered for valuation of gases cleared by the appellants on stock transfer basis. The appellants’ claim that during the relevant period their sale to M/s. Saraswati Air Products will satisfy the criteria for comparable price in view of volume and class of buyers. We find that this claim merits consideration. We find in the present case the demands were issued based on scrutinizing of periodical monthly returns filed by the appellants. On advice by departmental officers the appellants paid the differential/additional duty on 5.10.99 well before the adjudication. Certificates under Rule 57E were also issued to them for availing credit. We find in these circumstances imposition of penalties equal to duty difference demanded is not justifiable and accordingly, we set aside the same.
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