TMI Blog2023 (10) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... STAT, MUMBAI] , wherein it has been held that the provisions of Rule 8 of Central Excise Valuation Rules will not apply in a case where some part of the production is cleared to the independent buyers. The submission of the Appellant agreed upon that it is a settled position that Rule 8 of Excise Valuation Rules will not be applicable if apart from captive consumption, independent sales are also taking place directly from the factory gate or the depot of the manufacturer - Rule 8 of Central Excise Valuation Rules will not be applicable in this case and hence the demand of duty confirmed in the impugned order is not sustainable. Since the duty demand is not sustainable, the question of demanding interest and imposing penalty does not ari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Since the MS Ingots and structurals are sold to unrelated buyers, the independent sale price thereof is available, which is adopted for clearances of MS Ingot and structurals by the Appellant to Durgapur Steel Plant (DSP). 3. The Department issued a Show Cause Notice dated 06.01.2011 with regard to the clearance of MS Ingots and structurals during Financial Years 2006-07 to 2008-09 by the Appellant to their M/s. Durgapur Steel Plant. According to the SCN such valuation of excisable goods transferred to other units should be valued at 110% of cost of production under Rule 8 of the Central Excise Valuation Rules, 2000. The Notice was adjudicated by Commissioner and the demand of duty of Rs. 1,38,48,559/- was confirmed along with interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wm Spinning Mills v. Commissioner of C. Ex., Jallandhar 2015 (327) E.L.T. 657 (Tri. Del.) 6. The Ld. Commissioner in the impugned Order has held that the Appellant has made all the sales through the Branch Sales Office, i.e., the depot to unrelated persons and there is no factory gate sale apart from clearance to the other unit of the Appellant, and hence, Rule 8 of Excise Valuation Rules will be inapplicable. In this regard, the Appellant placed their reliance on the matter of Hindustan Insecticides Ltd. v. Commissioner of C. Ex., LTU, New Delhi 2017 (358) E.L.T. 845 (Tri. Del), wherein similar to present case, the independent sales were taking place only from the Assessee s depot. The Revenue confirmed demand on application o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erring MS Ingots and structural (intermediate goods) for further production to its other units when the same products are also sold by the Appellant to unrelated buyers from its depots/ stockyards? 11. We observe that the issue is no longer res integra as as the issue has already been decided in favour of the Appellant in the case of Ispat Industries Ltd. v. Commissioner of Central Excise Raigad 2007 (209) E.L.T. 185 (Tri -LB), wherein it has been held that the provisions of Rule 8 of Central Excise Valuation Rules will not apply in a case where some part of the production is cleared to the independent buyers. The relevant part of the decision is reproduced below: 5. We have considered the rival submissions and are of the view tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actory for consumption in the manufacture of other articles on behalf of the assessee. In this case, it is not the case of the revenue that the goods were transferred to other units for manufacture of other articles on behalf of the assessee/appellant, i.e. the Dolvi Unit. We agree with the assessee s contention that the expression assessee , wherever it appears in the Central Excise Rules, applies to a particular factory, which is why different units belonging to one company are separately registered and separately assessed to duty. Since the assessee in the present case is the Dolvi plant and it is not the revenue s case that the other three units of the company to whom HR coils were transferred were undertaking further manufacturing ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules will not be applicable if apart from captive consumption, independent sales are also taking place directly from the factory gate or the depot of the manufacturer. We also agree with the contention of the appellant that the entire exercise is Revenue neutral, since the other unit of the Appellant would be eligible to take credit. Thus, by relying on the decision in the case of Ispat Industries Ltd. v. Commissioner of Central Excise Raigad 2007 (209) E.L.T. 185 (Tri -LB), we hold that the duty paid by the Appellant for the transfer of goods to their Durgapur unit by adopting the sale value of the said goods from their depots/ stockyard to independent/ unrelated buyers, is proper. Accordingly, we hold that Rule 8 of Central Excise Valua ..... X X X X Extracts X X X X X X X X Extracts X X X X
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