Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 161 - AT - Central ExciseValuation - related party transaction - stock transfer of goods from Unit I to Unit II - From 2008 onwards, Unit I & Unit II were merged together - applicability of Rule 8 of Central Excise Valuation Rules, 2000 - Held that:- Clearance of goods from Unit I to Unit II is in the nature of stock transfer for captive consumption and there is no sale. Hence valuation is to be determined in terms of Central Excise Valuation Rules, 2000 - Rule 8 of the said Rules provides for valuation of goods for captive consumption on the basis of cost production plus 115%/110%, as applicable during the relevant period. In the case of Ispat Industries Ltd. [2007 (2) TMI 5 - CESTAT, MUMBAI], the Larger Bench of Tribunal has expressed the view that in cases where a part of the goods manufactured is also sold to independent buyers in addition to clearance to sister concern, the valuation can be done on the basis of value of clearance made to independent buyers. The Larger Bench of the Tribunal has expressed the view that in such cases, there will be no need to adopt the valuation as per Rule 8 of Central Excise Valuation Rules, 2000 and Rule 4 ibid, will apply in such cases. Demand set aside - the appeal filed by the Revenue is rejected. Demand of differential duty - period 2003-04 - Held that:- Since the clearance have been made from Unit I to Unit II, both belonging to the same Company, we are of the view that these lead to a revenue neutral situation - the demand for differential duty cannot be justified. Appeal allowed - decided in favor of assessee.
|