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2018 (11) TMI 816 - CESTAT HYDERABADValuation - captive consumption - clearances affected within the factory premises - applicability of Rule 8 of Central Excise Valuation Rules, 2000 - extended period of limitation - Held that:- Larger Bench of the Tribunal in the case of Ispat Industries Limited [2007 (2) TMI 5 - CESTAT, MUMBAI] has specifically ruled that the provisions of Rule 8 of the Valuation Rules will not apply in case where some part of a production is cleared to independent buyers - In the case in hand, it is seen that most of the goods which were manufactured by the appellant are cleared to independent buyers and the value of such clearances is higher than the value on which duty liability has been discharged by the appellant on the captively consumed goods. Rule 8 come into play when captively consumed goods are used for production or manufacture of other articles - In the case in hand, the factual matrix is that appellant has not consumed the goods for production or manufacture of other articles but has consumed the same for Civil construction from the expansion of the projects, hence the claim of applicability of the Rule 8 is ruled out. Extended period of limitation - Held that:- Since, there was litigation on the issue at various forums, the plea of Learned Counsel that there was no malafide in valuing the captively consumed goods based upon the cost of production formulae consumed goods needs to be accepted - the demands raised in these appeals by invoking the extended period of time are unsustainable and liable to be set aside. The demands raised and confirmed within the limitation period are upheld along with interest and penalties imposed for such an amount is also upheld - appeal allowed in part.
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