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2016 (5) TMI 306 - SC - Central ExciseIncludability - Whether amounts recovered by IIL in the form of debit notes towards bank charges interest etc. were includible in the assessable value of inputs iron ore pellets - Transfer of iron ore pellets by IIL to IMIL sister concern is a sale or transfer - Held that - as per circular dated 1.7.2002 a distinction is made between inputs on which credit has been taken which are removed on sale and those which are removed on transfer. If removed on sale transaction value on the application of Section 4(1)(a) of the valuation rules is to be looked at. However where the goods are entirely transferred to a sister unit it is reasonable to adopt the value shown in the invoice on the basis of which Cenvat Credit was taken by the assessee i.e. the invoice of the supplier of the pellets to the assessee. As it is clear that the present is a case of transfer and not sale of pellets no infirmity can be found with the Tribunal s judgment which only follows the circular dated 1.7.2001. In addition the Tribunal was also correct in holding that post manufacturing expenses cannot be loaded on to the amount equal to the duty of excise leviable on such goods as this amount would then cease to be an amount equal to the duty of excise but would be something more. Therefore on both these counts it is found that the Tribunal is justified in its finding on law which is based on its finding of fact that the present is a case of transfer and not sale. This being the case it is unnecessary to consider any of the other submissions made by the learned counsel including the point of limitation. - Decided against the revenue
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