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M/s. Inox Air Products Ltd. Versus CCE, Chandigarh

2016 (1) TMI 765 - CESTAT NEW DELHI

Valuation - stock transfer - Differential duty on clearances to their Faridabad unit - comparable price - Held that:- The appellants are selling the gases to different set of buyers while comparing the price for valuation purposes, as already stated, it is necessary to have comparable volume and proximity of time and comparable class of buyers. Revenue's stand that the highest of value is a comparable price is not supported by the provisions of law. We find that while the value adopted is to be .....

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claim merits consideration. - We find in the present case the demands were issued based on scrutinizing of periodical monthly returns filed by the appellants. On advice by departmental officers the appellants paid the differential/additional duty on 5.10.99 well before the adjudication. Certificates under Rule 57E were also issued to them for availing credit. We find in these circumstances imposition of penalties equal to duty difference demanded is not justifiable and accordingly, we set a .....

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hat the appellants are engaged in the manufacture of industrial and medical gases which are liable to Central Excise duty. They are supplying specified quantity of gases on stock transfer basis to their unit at Faridabad. Revenue felt that the appellants are not discharging correct excise duty on such clearances to their Faridabad unit. Accordingly the proceedings were initiated resulting in confirmation of demand for differential duty and imposition of equal penalties. On appeal, learned Commis .....

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their part. The entire duty paid by or payable by them is available as credit to their Faridabad unit. 4. During the course of arguments, learned Counsel for the appellants stated that neither the original authority nor the appellate authority has given any finding about what shall be the comparable value for the purpose of assessing duty in terms of Rule 6 (b) (i) of the Central Excise (Valuation) Rules, 1975. Learned Counsel pleaded that when comparable price is taken it should be for similarl .....

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s of section 4 (1) (b) read with Central Excise (Valuation) Rules, 1975. 6. We have heard both sides and considered the appeal papers. Perusal of the original orders and appellate orders indicate that there is no discussion or clear findings as to which comparable value has been taken for arriving at demand for differential duty. The lower authorities reproduced the provisions of section 4 (1) (a), section 4 (1) (b) and arrived at the conclusion that the value has to be fixed on comparable price .....

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ated, it is necessary to have comparable volume and proximity of time and comparable class of buyers. Revenues stand that the highest of value is a comparable price is not supported by the provisions of law. We find that while the value adopted is to be based on comparable value there is no sanction to take highest of the independent sale price for such purpose. This Tribunal in the case of Somaiya Organics (India) Ltd. -2009 (244) ELT 115 (Tri.-Del.) held that The normal price of the goods is .....

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