TMI Blog2016 (10) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... ared to sister unit. Rule 8 of Central Excise Valuation Rules, 2000 were substituted vide N/N. 14/2013-CE (NT) : dated 22.11.2013. The scope of the new Rule vis-à-vis the old rule was explained in the Board Circular dated 25.11.2013. It was clarified that the new provision was introduced which clearly state their application irrespective of whether the whole or a part of clearances of manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eared to the sister unit. The case of the Revenue is that the value of Central Excise duty should have been done under Rule 4 and not under Rule 8 of Valuation Rules, 2000. It was argued that Rule 8 will apply only in case where the entire production of a particular commodity is captively consumed. In the present case, admittedly, not the entire production of the said goods were consumed in the si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07.07.2011 addressed to the Assistant Commissioner (Audit) Indore clarified that as per the Boards Circular No. 634/34/2002-CX dated 01.07.2000 and Rule 8 of the Valuation Rules, they have transferred the goods to their sister concern correctly as per 110% of the cost of production on the basis of CAS-4 Certificate. They have also referred to the case laws in their support. The main point involve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch of the CESTAT in the case of Ispat Industries Ltd. decided the issue relating to transfer of part of final product to sister concern and balance to independent buyers and not the parts components of the final products as involved in the present case. Similarly, in the case of M/s. Aquamall Water Solutions Ltd. the Hon'ble CESTAT decided transfer of goods to certain brands to depot and sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5% of cost of production to be adopted for valuation as all along been the same. The Hon'ble Supreme Court in CCE, Mumbai vs. Fiat India Pvt. Ltd. - MANU/SC/0698/2012MANU/SC/0698/2012 : 2012 (283) ELT 161 (SC) held that a bare reading of Valuation Rules does not give any indication that the adjudicating authority while determining the value for duty of excisable goods had to follow the rules s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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