2017 (7) TMI 714

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..... essee but are used for consumption by him or for manufacture of other articles - In the present case it is not a case of the Revenue that all the goods are captively consumed by the appellants. No such findings have been recorded. Clearance on sales basis to the other units of the appellants cannot be considered as captive consumption. There is no factual support for such assumption - availability .....

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..... generated. These Side Slits are either captively consumed by the appellant in their own unit in Bangihati or cleared on sale basis to other units situated in Derabasi Chandigarh. They also cleared these side slits to independent buyers for other than captive consumption in their own unit. Duty liability on such HR Side Slits are calculated based on the transaction value. 3. The Revenue entert .....

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..... ion. b) The appellants have significant quantity of sales to independent buyers from their factory gate and in such a situation, the transaction value available for such independent sales can be made applicable for all clearances, by comparison. In any case, the sale value for their unit at Chandigarh and Derabasi is similar to the value of sale to that of independent buyers. Even on this gro .....

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..... with as captive consumption, on stock transfer basis. Even otherwise, when there is an independent sale transaction at the factory gate of the impugned goods, Rule 8 will have no application even if it is considered that there is a captive consumption on that account. We find no support from the legal provision for the finding recorded by the original authority. We note that Rule 8 of the Valuatio .....

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..... 2007 (209) ELT 185 (Tri-LB). 8. We find that the impugned order is not sustainable on both the grounds : availability independent sales to buyers and sale transaction on similar value to their own units. Rule 8 has no application in this case. 9. In view of the discussion and analysis as above, we find that the impugned order is not sustainable and the appeal is allowed. (Dictated and .....

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