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M/s. Steel Authority of India Limited Versus Commissioner of Central Excise, Raipur And Vice-Versa

2016 (1) TMI 970 - CESTAT NEW DELHI

Valuation - captive consumption - stock transfer - Determination of applicability of Rule 8 of Central Excise Valuation (Determination on Price of Excisable Goods) Rules, 2000 in respect of internally transferred goods for consumption in assessee's various project work - Held that:- Reasoning given by the original authority in his order dated 30/1/2006 regarding the applicability of Rule 8 in the present case of captive consumption is misconceived. Since the transaction value of the excisable go .....

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is higher than the cost of production adopted uniformly by the department. - We find that assessee paid duty on cost plus 15 per cent on the entire quantity of stock transferred to their other unit in Selam. The said amount was availed as credit by the Selam Steel Plant. The value adopted by them (Rs. 10,457/- per MT) is much more than value on which duty is being demanded (Rs. 9,489/-).Considering the above factual position, we find the impugned order dated 31/1/2006 is not sustainable on t .....

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filed, the Hon'ble Supreme Court refused the grant of the stay order. No further developments have been informed. - Decided against revenue. - Appeal No. E/1587, 1588/2006-EX[DB] & Appeal No. E/3122 and 3143/2006-EX[DB] - Final Order No. 53738-53741/2015 - Dated:- 23-11-2015 - Smt. Sulekha Beevi C.S., Member (Judicial) And Shri B. Ravichandran, Member (Technical) For the Petitioner : Shri Rahul Tangri, CA For the Respondent : Shri Govind Dixit, DR ORDER Per: B. Ravichandran There are four appeal .....

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ssessee and also finished goods transferred by the assessee to Selam Steel Plant for use in further manufacture. In respect of the goods which are captively consumed by the assessee in the project work they have paid duty on the basis of market price of similar goods at the relevant time. In respect of the stock transfer of finished goods to Selam Steel Plant for use in further manufacture, the cost of production was arrived at based on CAS-4 standards and duty paid accordingly. Proceedings init .....

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ection 4 introduced w.e.f. 1/7/2000 does not make any departure in the legal scope of transaction value for payment of Central Excise Duty. When there is a transaction value available it must be adopted. If the goods are not sold then the value may be determined in terms of section 4 (1)(b). Ld. Counsel submitted that the main case of the department is that the assessee failed to pay excise duty in terms of Rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 200 .....

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ted the provisions of Rule 8 will not apply in such situations. He further submitted that the original authority has fallen in error in interpreting the meaning of Rule 8. Assessee paid duty on these items used by them for civil work, taking the value of goods sold at the factory gate to independent buyers. 3. Ld. Counsel for the assessee submitted that in respect of the clearances made to other units like Selam Steel Plant the clearances are not on sale basis. These units are part of the same c .....

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y of Rule 8 for valuation in the present case, also submitted that the two appeals filed by the Revenue are mainly on the point of applicability of CAS-4 standard for costing for period before the issue of Board Circular dated 13/2/2003. 5. We have heard both the sides and examined appeal records. 6. The main point for determination is that the applicability of Rule 8 of Central Excise Valuation (Determination on Price of Excisable Goods) Rules, 2000 in respect of internally transferred goods fo .....

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as the same were not sold and were captively consumed. The said Rule during the relevant time clearly indicates that where the excisable goods are not sold by the assessee but are used by him or on his behalf in the production or manufacture of other articles, the value shall be 115% of the cost of production or manufacture of such goods. We find here the assesses are using only part of their production captively for project work. There are proper sale of these items to unrelated persons fulfil .....

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decisions of the Honble Supreme Court and Tribunal. In a recent decision in the case of Steel Complex Limited (Civil Appeal No. 3408/04 decided on 1/4/2015) the Supreme Court upheld the above reasoning. The ratio have been followed by the Tribunal in various decisions: 1. Balaji Electro Steel Ltd. Vs. CCE - 2007 (219) ELT 563 (Tri-Kol) 2. Oswal Woollen Mills Ltd. Vs. CCE-2012 (282) ELT 547 (Tri-Kol) 3. SAIL Vs. CCE-2010 (251) ELT 571 (Tri-Kol) 4. Gangotri Electrocasting Vs. CCE-2013 (293) ELT .....

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