TMI Blog2016 (11) TMI 773X X X X Extracts X X X X X X X X Extracts X X X X ..... ared to independent buyers - the provisions of Rule 4 are in any case to be preferred over the provisions of Rule 8 not only for the reason that they occur first in the sequential order of the Valuation Rules but also for the reason that in a case where both the rules are applicable, the application of Rule 4 will lead to a determination of a value which will be more consistent and in accordance with the parent statutory provisions of Section 4 of the Central Excise Act, 1944. Appeal allowed - decided in favor of appellant. - Appeal No. E/3260, 3295/2006-Ex(DB) and E/90/2007 - FINAL ORDER NO. 61533-61535/2016 - Dated:- 4-10-2016 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Technical) Shri. Aman proxy Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as a guide for the determination of value of goods which are disposed of except through sale. The direction cumulatively conveyed by these rules is to determine the value of those goods as they would have been sale price, in case, they were to be sold in the course of ordinary trade and commerce. In order to achieve this, rules have stipulated several methods and guidelines like adjustment for different date of delivery (Rule 4), adjustments towards freight (Rule 5), sale price of related buyer (Rule 6). Taking 115% of the cost of production is also one such method (Rule 8). In any event adopting a measure which would yield a very unreasonable and non-commercial value has to be avoided. Rule 11 specifically states, value shall be deter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... means consistent with principles and general provisions of the Rules and sub-section (1) of Section 4 of the Central Excise Act for ascertaining the value of the goods. In the present case, the determining the assessable value at 115% of the cost of production was clearly unreasonable and inconsistent with the principles and general provisions of the Rules and sub-section (1) of Section 4 OF the Central Excise Act. The principle laid down in the Section 4(1) of the Act is to adopt the sale price, where price is the sole consideration as the assessable value of the goods. The original valuation of the goods in question was according to this principle. The sale price to other buyers was adopted as the value for goods transferred to job worker ..... X X X X Extracts X X X X X X X X Extracts X X X X
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