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2020 (8) TMI 451 - SC - Central ExciseValuation of excisable goods - Amendment to Section 4 - change from Normal value to Transaction value - allegations that assessees in these cases allegedly undervalued the goods, sold them for a much higher price than what was reflected in the invoices and thereby they evaded the excise duty actually payable. - period of assessment was both prior to and after 01.07.2000 and in other cases, the period was after 01.07.2000 HELD THAT:- The Adjudicating Authorities as well as CESTAT are also guilty of failure to do something in these batches of cases - Since the Adjudicating Authorities as well as the CESTAT failed to make various determination, the orders of remand passed by the Tribunal, though for completely different reasons, were justified - Hence the appeals are liable to be disposed of, confirming the orders of remand passed by CESTAT, with a clarification on the legal issues so that the Adjudicating Authorities know how to proceed. However, while carrying out the exercise of readjudication, the Adjudicating Authorities should keep in mind the principles enumerated hereunder: Cases where the period of assessment is prior to 01.07.2000 First ascertain the price at which such goods are ordinarily sold by the assessee to a buyer who is not related to him, in the course of wholesale trade, at the time and place of removal and also find out whether the price is the sole consideration for the sale. If the Adjudicating Authority is able to find this out, he may take such price as the normal price and treat the case as covered by Section 4(1)(a), applying, wherever permissible, the prescriptions contained in the proviso to clause (a) of sub-section (1) of Section 4. If Value is not ascertainable, then follow the Rules. The phrase “for any other reason” appearing in Section 4(1) (b) would include cases where the price charged in the course of wholesale trade is not discernible or where the same, though discernible, cannot be linked to delivery at the time and place of removal or where the price is not the sole consideration for the sale, even though the price charged in the course of wholesale trade for delivery at the time and place of removal are available. Cases where the period of assessment is after 01.07.2000 First ascertain the “transaction value”, with particular reference to the definition of the said expression contained in Section 4(3)(d). Apply the transaction value so ascertained, to cases where three conditions, namely (i) the goods are sold for delivery at the time and place of removal, (ii) the assessee and buyer are not related and (iii) the price is the sole consideration, are satisfied. This is because such cases will fall under Section 4(1)(a). If Value is not ascertainable or all the 3 conditions are not satisfied, then follow the Rules. Principles applicable in common (both pre and post amendment) The Adjudicating Authority may treat any amount received either in cash or otherwise, over and above the invoice value, as the value of excisable goods even in cases falling under Section 4(1)(a) (after the amendment), as the definition of “transaction value” under Section 4(3)(d) means the price actually paid or payable. The Adjudicating Authority shall keep in mind the fact that while the expression “normal price” was not defined in Section 4(1) before amendment, the expression “transaction value” is defined very exhaustively in Section 4(3)(d) and this definition is both inclusive as well as exhaustive.
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