TMI Blog1999 (1) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... eld the valuation thereof as per the sale made by the respondents in November, 1993 for removals made during the period in the present dispute which is September, October and November, 1994. The quantity of 49.8 Metric Tonnes of molasses were sold to some Animal Feed Mixing Plant at the rate of Rs. 2,400/- per MT in November, 1993. 2. In their grounds of appeal the Revenue contends that since during the period of dispute there is no sale, therefore, the valuation of these excisable goods is to be done under the Central Excise Valuation Rules, wherein, the first applicable rule in this case would be Rule 6(b)(i). The said rule reads as under :- (b) where the excisable goods are not sold by the assessee but are used or consumed by him or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 83. Learned DR submits that either of them are higher than the Rs. 500/- assessable value at which the goods had been cleared by the respondents. He reiterates all the grounds of appeal and prays that the order impugned may be set aside. 5. Heard Shri J.V. Suryanarayana, learned Senior Advocate instructed by Shri J. Venkaiah Naidu, Advocate for the respondents. 6. Learned Senior Counsel submits that it is not disputed that all removals of molasses to their so called sister units which is located within the main complex adjacent to the unit where molasses is produced and sugar is manufactured did not involve any sale, because they are only stock transfer. In view of this Section 4(1)(a) is not applicable in this case there being no sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... most reliable evidence regarding price at which various sugar mills have cleared molasses on sale. He further submits that in this there are two classes or categories of manufacturers viz., those falling in the Private Sector and those falling in the Public Sector. The prices of these two are different. He further submits that if we see the average of the prices compiled for the public sector then their price of Rs. 500/- per MT is comparing favourable with this average price of Rs. 567.83. He submits that the price of private sector cannot be applied in their case as they are a completely 100% State Public Sector concern. He, therefore, submits that there is no infirmity in the Order-in-Appeal impugned and the revenue appeals deserve to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity molasses sold in one stray case by this very respondent twelve months earlier is to be adopted under this rule or the value of similar type of molasses on which it has been sold by other assessees of that region. In answer to this question, we find that the contention of revenue that the stray sale of Rs. 2,400/- per MT which was made by the respondents in the month of November, 1993 cannot be accepted as the nearest equivalent price under this rule because of the fact that it is a price which was available over twelve months earlier. The nearest equivalent price has necessarily, in the spirit of Section 4, to be at a time which is nearest to the period of dispute. We find that the order impugned has upheld the clearances made on an as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Pradesh. If that be so, then the compilation of the said South Indian Sugar Mills Association is nothing but a price enquiry of various sugar mills in that region in the State of Andhra Pradesh. We have no doubt about the authenticity or the genuineness of the price reported therein as the said association is a neutral body. In fact the work which would have been done by the department, showing the price, is readily available as neutral evidence on record in this behalf. 8. Therefore, in view of the aforesaid findings, we do not find any infirmity in the Order-in Appeal impugned before us in accepting the price of Rs. 500/- per MT which very closely approximates the average price of Rs. 567.83 and is equivalent to the price of two ..... X X X X Extracts X X X X X X X X Extracts X X X X
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