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2017 (4) TMI 1486 - AT - Central ExciseValuation - goods supplied to the sister concern as per Rule 8 of the Central Excise Rules, 1944 - Department was of the view that the appellant who has not paid the excise duty in respect of the goods supplied to their sister concern M/s Nalwa Steel & Power Limited in accordance with the rules of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 - HELD THAT:- It appears that it is not in dispute that during the relevant period, the appellant had supplied pig iron, rails etc. to its sister concern M/s Nalwa Steel Pvt. Ltd. as well as to independent buyers but for consideration. It is also not in dispute that the appellant raised invoices for the supplies made to the sister concern and charged consideration amount and also paid the excise duty on cost basis in accordance with Section 4 of the Central Excise Act, 1944, where the department plea is that since M/s Nalwa Steel Pvt. Ltd. falls within the definition of related party as defined under Section 4(3)(b)(i), the appellant ought to have assessed the excise duty payable as per Rule 8 of the Valuation Rules - Bare reading of rule 8 would show that rule 8 of Valuation Rules comes into play in cases of transfer of goods to a sister/ related concern without consideration. Admittedly, this is not a case of no sale and it is also not the case of the Department that sale documents have been fabricated, therefore, prima-facie Rule 8 would not come into play. Thus, the excise duty paid by the appellant in respect of goods sold to the sister concern on the basis of sale consideration as per Section 4(3)(b)(i) of the Central Excise Act cannot be faulted. Appeal allowed - decided in favor of appellant.
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