TMI Blog2016 (12) TMI 1518X X X X Extracts X X X X X X X X Extracts X X X X ..... e of 115% is without authority of law - freight charges is not includible in value adopted by the respondent - appeal dismissed - decided against Revenue. - Appeal No. E/1398/06 & E/3143/06 - A/94690-94691/16/EB - Dated:- 20-12-2016 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri Sanjay Hasija, Supdt. (A.R.) for Appellant Shri Sourabh Singhania, C.A. for respondent ORDER Per Ramesh Nair The fact of the case is that the respondent M/s. Blue Star Limited engaged in the manufacture of Air Conditioners/Refrigeration equipment and supplying the same on self basis at site and undertaking the job of erection and installation of such Air Conditioners/Refrigeration. The respondent have adopted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision will not apply. In the present case, the period is March 2002 to June 2004. As per the New Valuation Rules, the transportation charges can be excluded only in case of factory gate sale and not otherwise. He also placed reliance on the Board s Circular No. 692/8/2003-CX, dated 13.2.2003. 3. Shri Sourabh Singhania, Ld. Chartered Accountant appearing on behalf of the respondent submits that the respondent have not sold the Air Conditioners/Refrigeration equipment from the factory whereas it was supplied at site on self basis. Therefore at the time of clearance of the goods there is no sale, in such case the respondent have adopted the valuation under Rule 8 of Central Excise Valuation Rules, 2000 read with Rule 11 of Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule 8. On a plain reading of Rule 8 it is clear that the value should be 115% of the cost of manufacture of the product. The provision does not provide to add any elements over and above the 115% of the cost manufacture. Therefore addition of freight charges in the value of 115% is without authority of law. The Ld. Commissioner (Appeals) appreciated this legal position and given the following finding: As per CBEC Circular No. 692/8/2003-CX dt. 13.2.2003, the valuation of goods for captive consumption was to be done strictly in accordance with CAS-4 (Cost Accounting Standard 4) issued by ICWAI. The appellants have submitted that they had determined the value as per CAS-4. The same was checked and verified by the Asstt. Director (Cot), C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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