TMI Blog2010 (8) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... ur and Borivli at lower rates when compared to the price charged to independent buyers in respect of identical goods. The department, therefore, issued periodical show-cause notices, 15 in number covering the above period, to the respondent seeking to recover differential duty of over Rs.25 crores. In each of the show-cause notices, the maximum rate charged to independent buyers during the relevant period was adopted as basis for determination of the assessable value of the goods transferred to the sister units in the same period, an exercise done in terms of rule 6(b)(i) of the Central Excise Valuation Rules, 1975. The respondent contested the demand of duty on numerous grounds. They submitted that they had given various discounts to indep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e lower appellate authority went against the Revenue. Hence the present appeal of the Revenue. 2. We have heard the ld. JCDR for the appellant and the ld. Counsel for the respondent and have considered their submissions. 3. It is not in dispute that, on the facts of this case, the valuation of the goods is governed by the provisions of rule 6(b)(i) ibid. It is, again, not in dispute that clause (ii) of Rule 6(b) is not applicable inasmuch as, in this case, there was no exclusive clearance to sister units during any part of the period of dispute. During the period of dispute, the goods were partly cleared to sister units and partly to independent buyers, and the rates at which the goods were transferred to sister units were, by and large ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot been taken into account while applying the proviso to Rule 6(b)(i). The ld. Commissioner(Appeals) further observed that the lower authority had not abated the appropriate quantity discount, sales tax, loyalty discount and octroi from the prices charged to independent buyers so as to obtain the comparable price for the assessment of the goods cleared to sister units. These findings of the ld. Commissioner(Appeals) are under serious challenge in then present appeal. The ld. JCDR has submitted that the above findings recorded by the ld. Commissioner(Appeals) are not factually correct. It is submitted that, at least, loyalty discount was abated from the average prices charged to the independent buyers before the original authority determined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , has suggested that the case could be disposed of on the sole ground of revenue neutrality. It is submitted that whatever differential amount of duty paid by respondent for the period of dispute would be available as CENVAT credit to their sister units and, therefore, a typical revenue neutral situation exists. In this connection, the ld. Counsel has relied on the following judgments: (c) CCE, Pune vs. Coca Cola India Pvt. Ltd. 2007(213)ELT 490(SC) (d) India Pistons Ltd. vs. CCE 2008(221)ELT 295(Tri-Chennai) 6. In the case of Coca Cola India Pvt. Ltd., the assessee had cleared their products (non-alcoholic beverage bases/concentrate) to their bottlers who used the said materials in the manufacture of beverages. A classification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on dispute involved in this case is prima facie not relevant to the period from 01.07.2000. Nobody has claimed that a similar dispute between the assessee and Revenue for any other period prior to 01.07.2000 is upcoming. Apparently, the issue has no recurring effect and is only of academic interest. It is not in dispute that any amount of duty paid by the assessee will be available as CENVAT credit , without abatement, to their sister units, in which event a revenue neutral situation would emerge it. In the case of Coca Cola India Pvt. Ltd. (supra), the Hon'ble Supreme Court considered a similar situation and disposed of the case, leaving a question of law open. In the case of India Pistons Ltd. (supra), similar course of action was taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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