TMI Blog2005 (7) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Excise Act, which is required to be mentioned on the invoices issued under Rule 52A of the Central Excise Rules, 1944. In the instant case the respondents themselves have admitted in their letter of cross-objection dt. 26-5-2005, that they have paid Central Excise duty on CIF value of the impugned goods for purpose of claiming rebate under Rule 18 of the Central Excise Rules, 2002. Govt., therefore, would agree with the contention of the applicant Commissioner that as per provisions of Sections 4(1)(a) and 4(2)(d) of Central Excise Act, 1944 the value in terms of Section 4 should be the amount that the buyer of the exported goods is liable to pay. The buyer of the exported goods had paid an amount as shown in the Bank realizat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of scrutiny of Bank realization certificate, it was noticed that, the respondents had realized lesser amount i.e., sale proceeds as compared to the value shown in ARE-1 on the basis of submission of BRCs by the Assessee). The actual realization of sale proceeds being at lower side than that of the value shown on ARE-1 the assessee appeared to have realized excise duty at higher side by way of rebate. The different value comes to Rs. 17,04,286/- which involved total duty of Rs. 2,35,192/- (BED Rs. 2,04,514/- @ 12%+ AED Rs. 30,678/- @ 15% on BED) and as such the rebate of excess amount of Rs. 2,35,192/- was paid to the assesee while sanctioning aforesaid 15 rebate claims and recoverable in terms of Rule 18 of the Cenvat Credit Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... national trade. The FOB value so declared could be more or less than the AR-4 value depending upon the bargain power of the exporter/manufacturer. In case the adjudicating authority was apprehensive of the correct declaration of AR-1 value, the proper course was to have followed Central Excise Valuation Rules, 2003. That FOB value could be more or less than AR4 value is already clarified by CBEC Circular mentioned above. If bank realization certificates shows lesser amount then the FOB value declared, it is for the Customs of RBI to take necessary action in the matter. So only on the basis of lesser BRC Rebate claim under Rule 18 of the Central Excise Rules, 2002 cannot be varied. In view of the above the order of the lower authority was se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be determined under Section 4 of the Central Excise Act, 1944 and the same should be declared on the invoices and this value is relevant for the purpose of Rules 12 and 13 of the erstwhile Central Excise Rules, 1944. Now Rule 18 has been introduced in new Central Excise Rules, 2002 in place of old Rule 12 13 of erstwhile Central Excise Rules, 1944. It is now settled issue that the Board s instruction (sic) on the departmental officers. In view of the above the applicant Commissioner requested to set aside the impugned Order-in-Appeal. 5. Based on the above Revision Application a Show Cause Notice was issued to the respondents u/s 35EE of the Central Excise Act, 1944 dated 4-4-2005. 6. In response to the above Show Cause Notice the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... written and oral submissions. Govt., has also gone through the Order-in-Original, and the impugned Order-in-Appeal. The only question is to be decided in the instant Revision Application is that what should be value of the impugned goods for the purpose of payment of Central Excise duty on the impugned goods? For the purpose of valuation of the excisable goods relevant section is Section 4(1) of the Central Excise Act, 1944, which is extracted below :- Section 4 (valuation) Valuation of excisable goods for purpose of charging of duty of excise. - (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall - (a) in a case where the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. Govt., therefore, would agree with the contention of the applicant Commissioner that the excise duty on the goods should have been paid on transaction value as defined under Section 4(3)(d) of the Central Excise Act, 1944. CBEC vide their Circular No. 203/37/96-CX., dt. 26-4-96 have also clarified that AR 4 value should be determined under section 4 of the Central Excise Act, which is required to be mentioned on the invoices issued under Rule 52A of the Central Excise Rules, 1944. In the instant case the respondents themselves have admitted in their letter of cross-objection dt. 26-5-2005, that they have paid Central Excise duty on CIF value of the impugned goods for purpose of claiming rebate under Rule 18 of the Central Excise Rules, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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