TMI Blog2004 (11) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Commissioner of Central Excise (Appeals), Hyderabad. 2. The short point in this appeal is valuation of Stator Wounds made out of retrieved stator stacks out of old stators in the Stator Rewinding Unit of the appellants and used for captive consumption in the manufacture of compressor or sent to their service centres. 3. The appellants who manufacture compressors have a parent co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... teristics of goods to be assessed and on comparable goods as provided in Rule 6(b) of the Central Excise Valuation Rules, 1975. The stator wounds manufactured in parent factory and the stator wounds manufactured in the services centres out of retrieved stator stacks are comparable goods. However there is one difference, the item manufactured in the parent factory is completely new whereas the item ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for redressal. 4. Shri G. Shivadas learned advocate appeared for the appellants and Shri L. Narasimha Murthy, SDR appeared for the Department. 5. The learned advocate urged that Rule 6(b) of the Central Excise Valuation Rules clearly provide for adjustments in the valuation of comparable goods. He said there is always difference between a new item and a used one. While costing the price, due a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gents v. CCE [1991 (51) E.L.T. 391 (Tri.)] (3) Union Carbide India v. CCE [2003 (158) E.L.T. 15 (S.C.)] (4) M/s. Rajasthan Spinning Weaving Mills Ltd., Anr v. CCE - Final Order No. 906-907/2004-NBA, dated 27-8-2004. [2005 (179) E.L.T. 70 (Tri.)] (5) CCE, Calicut v. Steel Complex [2004 (176) E.L.T. 494 (Tri.) = 2004 (61) RLT 526] (6) Crompton Greaves Ltd., v. CCE [2003 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed item is reasonable or not. In our view the cost of new item cannot be the same as the cost of an item used say for three years. In commercial practice while costing a used item, due allowance is given for depreciation of its value. Moreover all the case laws cited by the appellant are in their favour. Under these circumstances, the demand of the differential duty equating stator wounds manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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