TMI Blog2020 (6) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... has been introduced was that of transaction value. Therefore, if the same goods are sold by the same assessee at different prices on different dates or to different customers, each such price would be the transaction value for the purpose of determining the Central Excise duty. In this changed law, a doubt had arisen in the minds of the officers as to how deal with the cases where there is sale to independent buyers as well as sale of the same product to sister concerns by the assessee. This has been clarified by the CBEC in the aforesaid Circular categorically holding that the price at which goods are sold to independent buyers cannot be applied to determine the value for sale to related persons. The impugned order is correct and causes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se notice. 3. Aggrieved by this impugned order, the present appeal is filed by the Revenue asserting that the demand should have been confirmed as sales to independent buyers should form the basis for assessment of goods transferred to sister concerns as well. 4. The Ld. Counsel for the respondent draws the attention of the Bench to CBEC s Circular No. 643/34/2002-CX dated 01.07.2002. In this circular the Board has clarified various doubts with respect to the Central Excise Valuation Rules which came into effect from 01.07.2000. Serial No. 12 of this clarification reads as follows: How will valuation be done when goods are sold partly to related persons and partly to independent buyers? It was answered as follows: There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of quantity (specific rate of duty) or value (advalorem rate of duty). If the goods are to be taxed on advalorem basis, valuation has to be done in terms of Section 4 of the Central Excise Act, read with the Central Excise Valuation Rules. Prior to 2000, the valuation under Section 4 was on the basis of normal value i.e., the price at which such goods are sold in the course of wholesale trade where the buyer and seller are not related persons. The Valuation Rules during that period also enabled arriving at such normal price. This Section was completely revamped and a new Section 4 has been introduced with effect from the year 2000. Instead of charging duty on the normal price, duty is thereafter to be charged on the transaction value. Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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