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2018 (11) TMI 1136 - AT - Central ExciseValuation - prototypes - Department contends that the valuation under Section 4(1)(b) r/w Rule 11 and Rule 8 should be applied - Held that:- At no stretch of imagination, the assessable value of similar model vehicle can be ₹ 71,14,198/-. It is to be noted that under Rule 126 of Central Motor Vehicle Rules, 1989, a prototype of every motor vehicle shall be subject to testing by designated Government Departments or Research Associations or Testing Institutes to ascertain the compliance of provisions of the Act and Rules. The said Act itself uses the word ‘prototypes’. Only after certification by such authorities can the manufacturer of motor vehicles manufacture and market the motor vehicles. The similar model vehicles which are commercially manufactured can be said to be copies of the prototypes. It cannot be then said that these prototypes are consumed in further manufacture of motor vehicles. Thus Rule 8 of Central Excise Valuation Rules 2000 will not apply to such a situation. Appeal dismissed - decided against Revenue.
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