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2017 (4) TMI 383 - AT - Central ExciseValuation - pesticides and insecticides - clearnce of products to their depots situated at various parts of the country on stock transfer basis - demand of ₹ 15,10,815.00 has arisen on account of application of Rule 8 of Central Excise Valuation Rules, 2000, which mandates that duty of Central Excise is to be charged at 115% on cost of production, where goods are cleared for captive consumption - Held that: - Rule 8 of Valuation Rules is applicable only when entire production is captively consumed by the manufacturer. In the present case, the assessee is also selling the goods to independent buyers at similar or lower prices. Therefore, the application of Rule 8 of Central Excisable Valuation Rules, 2000 is not correct. In this regard, the assessee has given copies of some sale invoices as a proof that they sold the goods to independent buyers also - the duty demand of ₹ 15,10,815.00 along with interest and equivalent penalty is not sustainable and the same is hereby dropped - demand set aside. The demand of ₹ 2,12,180/-, where department says that assessee paid the duty on invoice price which was less than the revised MRP - Held that: - If MRP has been revised and the same was correctly reflected in the invoice, the said demand cannot be sustained. This fact is required to be verified by the original adjudicating authority. Therefore, the matter is remanded to the original adjudicating authority - matter on remand. Demand of ₹ 13,20,636/-, where department’s charge is that goods were sold from the depots at higher price(s) and duty is leviable on such differential higher price - Held that: - goods have been sold from the depot and not from the factory gate; when it is so, the transaction value at the time of sale from the depot is to be taken as assessable value for charging the duty of Central Excise - When sales have taken place only from the assessee’s depots located at various parts of the country, ‘transaction value’ as per section 4 of Central Excise Act, 1994 is the price at which said goods are sold from the depots and duty accordingly is to be charged on the said price. Consequently there is no scope to interfere with the impugned order in this regard - demand upheld. Appeal disposed off - decided partly in favor and partly against assessee - part matter on remand.
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