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2019 (5) TMI 126 - AT - Central ExciseValuation - clearance of goods based on a fixed refinery gate price at the time of clearance - Time of removal - HELD THAT:- The assessee is manufacturing goods and clearing them from their factory to the depots. It is also not in dispute that they are subsequently, selling the goods from their depots. Therefore, the time of removal of goods is different from the time of sale of the goods and no sale price is available at the time of removal of the goods. Under such circumstances, in terms of Sec.4 read with Rule 7 of Central Excise Valuation Rules, 2000 the price to be applied at the time of clearance of goods, is the price nearest to the time of removal at which such goods have been sold. A plain reading of Sec.4 read with Rule 7 would show that clearance at a price nearest to the time of removal would mean the price which will be available to the assessee at the time of removal as being the price at which the goods were sold. It is impossible for the assessee to predict what will be the price after the removal of goods and when such transaction will take place - thus the price to be reckoned is price at which such goods have been sold at the time nearest to the time of removal. The appellant had clearly contravened the provisions of Sec.4 read with Rule 7 of Central Excise Valuation Rules, 2000 without any justification and evaded payment of Central Excise duty. The intention cannot be clearer than this. Impugned order upheld - appeal dismissed - decided against appellant.
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