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2019 (1) TMI 1645 - AT - Central ExciseValuation - parts of fire protection systems manufactured on site while undertaking turnkey projects - adoption of price on clearance to independent buyers, when ascertainable at the factory gate - rule 6 of the erstwhile Central Excise (Valuation) Rules, 1975 - HELD THAT:- The entire dispute pertains to the period prior to 1st July 2000 and the applicability of rule 7 of Central Excise (Valuation) Rules, 1975. The appeal of the appellant herein before the first appellate authority was rejected solely on the ground of coverage by the decision of the Tribunal in re Vijay Fire Protection Systems Ltd [2004 (4) TMI 146 - CESTAT, MUMBAI] which has been set aside, after detailed consideration by the Hon’ble Supreme Court, in re UTC Fire and Security India Ltd. [2015 (8) TMI 494 - SUPREME COURT]. In UTC Fire and Security India Ltd, it has been held that The only mistake which is committed by the Commissioner is to refer to Rule 6(b) inasmuch as in the present case, the goods are not consumed by the appellant/ assessee itself but used in the turnkey projects/contracts meant for the third party. Thus, it was Rule 7 which should have been referred to by the Commissioner (Appeals) as none of the preceding rules would apply. To put it otherwise, it is the case of ‘best judgment assessment’. The demand pertaining to the period prior to 1st July, 2000 is set aside - appeal allowed - decided in favor of appellant.
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