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TMI Blog2012 (11) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the appellants are engaged in manufacture of woollen yarn, acrylic yarn, grey manmade yarn and woollen fabric, acrylic blankets etc. which are excisable items. The period of dispute is w.e.f. July 2000 to 31-3-2001. The appellant upon served with a show cause notice that during the aforesaid period they manufacture and cleared aforesaid goods to their own unit, and related parties besides other unrelated buyers at the same price. The appellant paid excise duty as per the transaction value in terms of Rule 4 of Central Excise Valuation Rules 2000, whereas the Department was of the view that the appellant ought to have paid excise duty in terms of Rule 8 and 9 of Central Excise Valuation Rules and on that premise the duty demand was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies were made only to the related parties or for capitive use by the appellant, as such, the Adjudicating Authority as well as Commissioner (Appeals) have rightly invoked Rule 8 and 9 and confirmed the demand. In support of his contention, Shri Sunil Kumar has relied upon the judgments of the Tribunal in the case of BOC India Ltd. v. CCE, Jamshedpur reported in 2004 (168) E.L.T. 478 (Tri.-Kolkata) and Ucal Machine Tools Ltd. v. CCE, Chennai reported in 2008 (223) E.L.T. 647 (Tri. - Chennai). 5. We have considered the rival contentions and perused the record. Real controversy between the parties revolves round the issue whether or not the appellant at the relevant time were supplying the goods to related as well as unrelated parties? I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able goods under assessment, as may appear reasonable. Rule 8. Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be [one hundred and ten per cent] of the cost of production or manufacture of such goods. Rule 9. When the assessee so arranges that the excisable goods are not sold by an assessee except to or through a person who is related in the manner specified in either of sub-clauses (ii), (iii) or (iv) of clause (b) of sub-section (3) of Section 4 of the Act, the value of the goods shall be the normal transaction value at which these are sold by the related person at the time of removal, to buyers (not being rela ..... X X X X Extracts X X X X X X X X Extracts X X X X
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