TMI Blog2013 (12) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... Valuation Rules would not arise at all - Even if for a moment it is assumed that Rule 8 will not apply and in the absence of any specific provision under any other rules, resort will have to be made to Rule 11 which provides for using reasonable means consistent with the principles and general provisions of the Rules and sub-section (1) of Section 4 of the Act - Even if the provisions of Rule 11 are applied, the most appropriate rule will be Rule 8 - even if it is held that Rule 8 will not apply, then even under Rule 11, the principles envisaged in Rule 8 should be followed – Decided against Revenue. - E/3201/2004 - Final Order Nos. A/921-922/2013-WZB/C-II(EB) - Dated:- 17-10-2013 - P R Chandrasekharan And Anil Choudhary, JJ. For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2 for undertaking manufacturing activities at Unit No.2 and discharges excise duty liability on such flux cored wire and welding electrodes at 115% of the cost of production as provided for under Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Since the respondent, apart from manufacturing excisable goods, were also undertaking rebuilding/re-conditioning work of old/used/defective Grinding Rollers, Liners, etc. and flux cored wire and welding electrodes were used in undertaking such reconditioning work, the department was of the view that duty liability should have been discharged not on the basis of cost-construction method under Rule 8 but under Rule 5 of the said Valuation Rules, which pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, discharge of excise duty liability by the respondent, following the procedure prescribed under Rule 8 is correct in law and, therefore, the impugned order passed by the lower appellate authority is sustainable in law. 5. We have carefully considered the submissions made by both the sides. 5.1 Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods), Rules 2000 reads as follows: "(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." The expression used is production or manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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