Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 970 - AT - Central ExciseValuation - captive consumption - stock transfer - Determination of applicability of Rule 8 of Central Excise Valuation (Determination on Price of Excisable Goods) Rules, 2000 in respect of internally transferred goods for consumption in assessee's various project work - Held that:- Reasoning given by the original authority in his order dated 30/1/2006 regarding the applicability of Rule 8 in the present case of captive consumption is misconceived. Since the transaction value of the excisable goods is available and not all the excisable goods are captively consumed, the provisions of Rule 8 as prevailing during the relevant time will not apply to the assesses. On the second issue regarding valuation of steel items cleared on stock transfer to other plants of the assessee, we find that the concept of related person has no relevance.All the units are part of one company. There is no sale of goods in this stock transfer. The assesses have paid duty based on cost of production which is higher than the cost of production adopted uniformly by the department. We find that assessee paid duty on cost plus 15 per cent on the entire quantity of stock transferred to their other unit in Selam. The said amount was availed as credit by the Selam Steel Plant. The value adopted by them (Rs. 10,457/- per MT) is much more than value on which duty is being demanded (Rs. 9,489/-).Considering the above factual position, we find the impugned order dated 31/1/2006 is not sustainable on this ground. Regarding the two department's appeals against the impugned orders we find that the only ground taken is that the costing of goods as per CAS-4 standards will be effective only from the date of issue of circular dated 13/2/2003 by the Board. We find the applicability of CAS-4 standards for all the cases even pending at the time of issue of circular has been upheld by Tribunal in the case of National Aluminum Company Limited ( 2005 (3) TMI 186 - CESTAT, NEW DELHI ). On the SLP filed, the Hon'ble Supreme Court refused the grant of the stay order. No further developments have been informed. - Decided against revenue.
|