TMI Blog2018 (11) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... fter certification by such authorities can the manufacturer of motor vehicles manufacture and market the motor vehicles. The similar model vehicles which are commercially manufactured can be said to be copies of the prototypes. It cannot be then said that these prototypes are consumed in further manufacture of motor vehicles. Thus Rule 8 of Central Excise Valuation Rules 2000 will not apply to such a situation. Appeal dismissed - decided against Revenue. - Appeal No. E/469/2011 - Final Order No. 42408/2018 - Dated:- 12-9-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Shri K. Veerabhadra Reddy, JC (AR) for the Appellant Shri Raghavan Ramabhadran, Advocate for the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of law, the Commissioner vide impugned order held that the valuation is to be done under Rule 4 and that Rule 11 r/w Rule 8 is not applicable. The assessable value adopted by the assessee was increased by the adjudicating authority and differential duty was confirmed under Rule 4. The assessee had paid the said enhanced differential duty. Aggrieved by the dropping of the demand as raised in the show cause notice as well as penalties, the department has filed the present appeal. 3. The ld. AR Shri K. Veerabhadra Reddy appeared and argued on behalf of the department. At the foremost, it was submitted by him that the respondents did not file any appeal or cross-objections and therefore the findings of the Commissioner that the goods (prot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her decision relied upon by the adjudicating authority is the case of M/s. VST Tillers and Tractors Ltd. Vs. Commissioner of Central Excise 2003 (159) ELT 699. In the said case, the issue before the Tribunal was whether the IC engines consumed captively by the assessee can be valued on the basis of sale price of identical goods sold subsequently. In the present case, prototypes are not identical goods with the similar model motor vehicles sold subsequently and therefore the decision would not apply. When the prototype vehicles are sold for the purpose of testing of road worthiness, the situation is akin to the prototype vehicles being used / consumed in the manufacture of motor vehicles and therefore Rule 8 would be applicable for valuati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prototypes are final product by themselves and cannot be said to be consumed in the manufacture of further motor vehicles. That the allegation that the respondent ought to have adopted Rule 8 and CAS-4 is entirely wrong. He adverted to the Order-in- Original No.18/2010 dated 28.10.2010 in their own case passed by the Commissioner of Central Excise, Pune wherein on similar set of facts and issue, the adjudicating authority had dropped the proceedings. On the very same issue, another show cause notice was issued which culminated in passing of Order-in-Original dated 7.10.2013 by the Assistant Commissioner of Central Excise, Pune against which the appellant filed appeal before Commissioner (Appeals). By Order-in-Appeal dated 21.2.2015, the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of the Act and Rules. The said Act itself uses the word prototypes . Only after certification by such authorities can the manufacturer of motor vehicles manufacture and market the motor vehicles. The similar model vehicles which are commercially manufactured can be said to be copies of the prototypes. It cannot be then said that these prototypes are consumed in further manufacture of motor vehicles. Thus Rule 8 of Central Excise Valuation Rules 2000 will not apply to such a situation. We find that the Commissioner has gone deeply into the analysis of what is prototype and the valuation to be adopted for such prototypes. He has also relied upon the Order-in-Original No. 18/2010 dated 28.10.2010 passed by the Commissioner of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X
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