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2018 (10) TMI 387 - AT - Central ExciseMethod of Valuation - Transaction value or MRP based valuation - clearing ball bearing to their institutional buyers - sale of manufactured products to various actual users as well as to the retail sellers located in Jaipur and outside. Held that:- The appellant assessee have been clearing ball bearing to their institutional buyers as well as to their retail sellers on payment of duty on the basis of transactional value and not on the basis of MRP value given on the packing of such clearances. It is also the matter of record that the notifications issued time to time under section 4A of the Central Excise Act, 1944 do not cover the ball bearings falling under Chapter 84.82 specifically for adopting Maximum Retail Price for determination of assessable value for payment of Central Excise duty. The department is of the view that bearings are part of automobiles and therefore, the notification namely 11/2006 etc. as amended covers ball bearings for MRP based assessment as being a part of automobiles - We are of the view that the bearings as such, are not part or components of the automobile vehicles though the ball bearings to form a part of other parts of automobile vehicles It has been intention of the legislature ab initio not to consider that ball bearings as parts of automobile vehicles - also, the department has not brought on record any evidence to prove that as appellant assessee has sold any of his consignments of ball bearings to any manufacturer of automobile or any service station of automobiles. The department has stretched the provisions of law unnecessarily to include small quantities of ball bearings cleared on retail sale under the provisions of section 4A without substantiating such claim with some concrete evidences - thus, ball bearings are not included under relevant notifications issued under section 4A of the Central Excise Act, 1944 and therefore, same cannot be considered for assessment on the basis of MRP value. Appeal allowed - decided in favor of appellant.
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