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2019 (7) TMI 1614 - CESTAT NEW DELHIValuation - normal transaction value or not - value to be adopted as per factory gate or as per depot - duty discharged on the transaction value, as was determined at the factory gate - alleged that had the Central Excise duty been paid on the value at the time of clearances from depot the Central Excise duty would have been more - recovery of short paid duty with interest and penalty - HELD THAT:- Rule 2 (b) of the Valuation Rules define normal transaction value to mean the transaction value at which the greatest aggregate quantity of goods are sold. Rule 3 to 11 are relevant for determining the said value. Section 4 of Central Excise Act, 1944 speaks about valuation of excisable goods for the purposes of charging the duty of excise. Sub-section 1 makes it clear that where price is the sole consideration for the same at the time and place of removal and parties are not related, the said price shall be the transaction value. In rest of the other cases the value shall be determined in the manner as prescribed - Rule 7 of Value Determination Rules though has been impressed upon by the adjudicating authority, but the said rule cannot be applied in isolation. The rules have to be read in reference to the context of the specific provision in the statute. Thus, Rule 7 has to be read in reference to the context of above quoted Section 4 of Central Excise Act, 1944 - The conjoint reading does not alter the legal fact that four of the depots herein were the place of the removal for the Appellant. It is not denied that the value of depots’ invoices had the element of excise duty as was paid at the time of clearance from the factory gate. The transaction value has to be the basic price not including the said excise duty. Thus, it can be safely held that depot can be a place of removal and that the transaction value has not to include the amount of duty of excise, sales tax and other taxes. In the present case, the document of details of prices at factory rate, the amount of excise duty paid and the prices at the depot have been provided by the Appellant to the Tribunal - these documents need verification at the end of the adjudicating authority below, so as to conclude about the value in depot invoice as a whole to have the assessable value/transaction value plus the amount of excise duty or not. The matter remanded requiring the original adjudicating authority to verify and then to conclude accordingly for adjudicating the impugned SCN afresh - appeal allowed by way of remand.
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