TMI Blog2011 (8) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - E/443, 502, 618 & 622/08-Mum - - - Dated:- 25-8-2011 - Mr Ashok Jindal, Mr.Sahab Singh,JJ. Appearance Shri Prakash Shah, advocate for Appellants Shri V.K.Agarwal, SDR for Respondent Per : Ashok Jindal The appellants M/s. New Bombay Ispat Udyog (P) Ltd. has filed the appeal against the order of confirmation of demand of differential duty of Rs. 1,00,65,835/- alongwith interest and penalty of equivalent amount and Shri Chetal Damji Lodaya is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the allegation of the department for undervaluation of M.S.Ingots is not sustainable as the appellants are clearing their finished goods to their sister concern as well as to the independent buyers. He has also submitted that they have cleared the goods to their sister concern on a price at which they have cleared the goods to the independent buyers. Therefore, the provisions of Rule 9 read with Rule 8 are not applicable to their goods. In fact, the transaction value as per Rule 4 is applicable to their case. To support this contention, he placed reliance on the decision of the Larger Bench of the Tribunal in the case of Ispat Industries Ltd. vs Commissioner of C.Ex. Raigad reported in 2007 (209) E.L.T. 185 (Tri-LB). He, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso consistent with the provisions of Section 4 of the Central Excise Act. We would, at this stage, draw support from the judgment of the Supreme Court in the assessee's own case, as reported in 2006 (202) E.L.T. 561, wherein the Court applied 'The Gunapradhan Principle' in interpreting the Customs Valuation Rules. Wehave kept in mind the following observations of the Court in coming to our above conclusion: "26.?In our opinion if there are two possible interpretations of a rule, one which subserves the object of a provision in the parent statute and the other which does not, we have to adopt the former, because adopting the latter will make the rule ultra vires the Act. 27.................. 36. In our opinion, the Gunapradhan princi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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