TMI Blog2014 (4) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Valuation Rules, 2000 needs to be followed. In the said provisions, Rule 4 of the Valuation Rules clearly indicates that the value of excisable goods shall be based on such goods sold by the assessee. Value need to be adopted by the appellant on the goods which were cleared to their sister concern should be done under Rule 4 of the Valuation Rules, 2000 which is the correct position of law, inasmuch as the Central Excise Valuation Rules were framed, to determine the correct value of the goods cleared, which fall under the provisions of Section 4(i)(b) of the Central Excise Act, 1944. In the case in hand, since there is no dispute that the goods which were cleared by the appellant to their sister concern are the same which are clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are cleared to related persons/sister concern/units of group company, the valuation should be done as per Rule 8 and/or 9 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (hereinafter referred to as the Valuation Rules) and the cost of production for calculation of assessable value (110% of cost of production) is to be taken as per CAS-4 certificate issued by the Cost Accountant. It appeared that the appellant have paid duty on the normal transaction value of goods cleared to independent purchasers; the appellant did not provide the required CAS-4 certificate before the audit party in respect of the valuation of goods to determine whether the valuation was done under the provisions of Rules 8 and 9 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on that this was the correct law which has been followed by them and this law is settled by the Larger Bench decision of the Tribunal in the case of Ispat Industries Ltd. - 2007 (209) E.L.T. 185. It is his submission that the judgment of the Larger Bench was cited before the First Appellate Authority but the first appellate Authority has not considered it fit to follow the ratio. 4. Learned Departmental Representative would submit that the appellant need not have any grievance as the First Appellate Authority has remanded the matter to the Adjudicating Authority to reconsider the issue afresh and also verify the CAS 4 certificate produced by the appellant. It is his submission that the claim of the appellant that CAS 4 certificate which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther time nearest to the time of the removal of goods under assessment, subject, if necessary, to such adjustment on account of the difference in the dates of delivery of such goods and of the excisable goods under assessment, as may appear reasonable. 8. It could be seen from the above reproduced rule that the value need to be adopted by the appellant on the goods which were cleared to their sister concern should be done under Rule 4 of the Valuation Rules, 2000 which is the correct position of law, inasmuch as the Central Excise Valuation Rules were framed, to determine the correct value of the goods cleared, which fall under the provisions of Section 4(i)(b) of the Central Excise Act, 1944. In the case in hand, since there is no disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw 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. We have 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 principle is fully applicable to the interpretation of Rule 9(2). Rule 9(2) is subservient to Section 14. We must, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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