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2018 (3) TMI 257 - AT - Central ExciseValuation of the cars manufactured and sold - acceptance of transaction value - Section 4 (1) (a) of the Central Excise Act, 1944 - Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Held that: - The main elements to satisfy transaction value in terms of Section 4 (1) (a) are that such value should be for delivery at the time and place of removal; between unrelated parties and price being the sole consideration for sale and the same had not been influenced by any other consideration - The fact of the present case are that the Revenue proceeded against the appellant only on the ground that the price is not the sole consideration for sale of cars by the appellant during the material time. There is no allegation that the appellant and the buyers of the car are related persons or any consideration in money terms or non-money terms were received directly or indirectly by the appellant from such buyers. The appellant was centrally registered with large tax payer unit (LTU) during the relevant time. As such, the production clearance of the appellant in all their units should have been considered in a holistic manner - there were glaring omissions in noting certain factual details by the Original Authority. Some of the crucial submissions on facts made by the appellant were not even discussed. These are with reference to escalation in the cost due to various factors beyond the control of the appellant and also sale of same model of cars both in profit as well as in loss in the same financial year. Similarly, we also note that the appellant’s plea regarding various decisions of the Apex court on valuation and provisions of Section 4 (1) (a) were also not examined with required analysis. The appellant strongly contested the finding with specific reference to amendment to Section 4 (1) w.e.f. 14/05/2003 readwith provisions of Rule 6 and the valuation rules. This also requires clear finding. Erosion of capital - Held that: - net worth of the company is different from the capital of the company. There was no reduction in the share capital of the appellant during the material period. We note that the finding by the lower authority on erosion of capital appears to be not based on Standard accounting and commercial principles. Extended period of limitation - Held that: - there is no reason to invoke allegation of suppression, mis- representation with an intention to evade payment of duty on the part of the appellant/assessee. There is no case for such allegation - extended period not invocabe. Appeal allowed in part.
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