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2018 (12) TMI 424 - AT - Central ExciseValuation - sponge iron transferred to Unit-II - applicability of Rule 8 of the Central Excise Valuation Rules, 2000 - clandestine removal - Held that:- The final product i.e. sponge iron has been cleared from the Raniganj Unit to Burdwan Unit. Since such clearances do not involve any sale, but are in the nature of transfer, the valuation to be adopted for payment of duty is to be determined as per the Central Excise Valuation Rules, 2000. Identical issue decided in the case of ISPAT INDUSTRIES LTD. VERSUS COMMISSIONER OF C. EX., RAIGAD [2007 (2) TMI 5 - CESTAT, MUMBAI], where it was held that the provisions of Rule 8 of the Valuation Rules will not apply in a case where some part of the production is cleared to the independent buyers. The appellant has made clearances to independent buyers in addition to the Burdwan Unit. The values for clearances to Burdwan Unit are in line with the values adopted for independent buyers - there is no justification for demand of differential duty. Clandestine removal - shortage of sponge iron recorded at the time of stock verification - Held that:- Looking at the nature of the finished products i.e. sponge iron, which is in loose granule form, carrying out weighment physically is also impractical. In any case no evidence has been brought on record to allege that the goods recorded as shortage were cleared clandestinely - Demand set aside. Appeal allowed - decided in favor of appellant.
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