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2023 (12) TMI 744 - CESTAT HYDERABADValuation of the goods - Appellant Assessee have cleared kraft paper to their sister concern, and also to independent buyer during the period November 2001 to September 2010 - HELD THAT:- During the period November 2001 to February 2009 appellant had both sales to independent buyers and also goods removed to their sister concern - it is found that, under such facts and circumstances, the issue is wholly covered by ruling of the Larger Bench decision of this Tribunal in the case of ISPAT INDUSTRIES LTD. VERSUS COMMISSIONER OF C. EX., RAIGAD [2007 (2) TMI 5 - CESTAT, MUMBAI-LB] - The issue before the Larger Bench was whether the assessable value in respect of goods which are transferred to any plant/unit of the same assessee, is required to be determined as per Rule 4 or Rule 8 of Central Excise Valuation Rules 2000, in case where some goods were also sold to independent buyers. The Larger Bench have held in the circumstances and facts as follows:- (a) the provisions of Rule 8 of the Valuation Rules will not apply in a case where some part of the production is cleared to independent buyers; (b) the provisions of Rule 4 are in any case to be preferred over the provisions of Rule 8 not only for the reason that they occur first in the sequential order of the Valuation Rules but also for the reason that in a case where both the rules are applicable, the application of Rule 4 will lead to a determination of a value which will be more consistent and in accordance with the parent statutory provisions of Section 4 of the Central Excise Act, 1944. For the period March 2009 to September 2010 admittedly there are no independent sales and all the removal of the goods are to the sister unit. Learned Counsel mentions that for this period, they have not disputed the differential duty demanded by Revenue and they have deposited the same with applicable interest. For this period, Learned Counsel states that the issue is of wholly interpretational in nature, thus penalty is not imposable. The issue herein is squarely covered by the ruling of the Larger Bench of this Tribunal in the case of Ispat Industries ltd., which have been confirmed by the Gujarat High Court in the case of Ultra Tech Cements Ltd. - the impugned order set aside - appeal allowed.
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