2018 (9) TMI 1196 - AT - Central Excise

Finalization of Provisional assessment - Stock Transfer to Depots - Rule 7 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 - Since the information in respect of such goods such as the cost of transportation from the factory to where the sale took place was not known in advance, Provisional Assessment was done. Held that - The issue decided in appellant own case M/S UAL UTTAR PRADESH VERSUS COMMISSIONER OF CENTRAL EXCISE, ALLAHABAD 2018 (8) TMI 781 - CESTAT ALLAHABAD , where it was held that after ordering Provisional Assessment for want of data on cost of transportation subsequently Revenue cannot change its stand and order finalization of assessment by invoking the said Rule 7. Matter remanded back to the Original Authority who shall re-determine either duty payable by the assessee or refund payable to the assessee by invoking provisions of the said Rule 5 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000.

Summary

Issues:
Provisional assessment under Central Excise Valuation Rules, 2000.

Analysis:
The appeal arose from Order-in-Appeal No.145/CE/ALLD/2010 passed by the Commissioner (Appeals), Central Excise, Allahabad. The appellants, engaged in the manufacture of Asbestos Cement Products, were clearing goods on payment of duty from the factory and transferring goods to Depots and Consignment Agents. The duty for goods transferred to Depots and Consignment Agents was paid at their premises during clearance due to unknown transportation costs in advance, leading to provisional assessments. The assessments were finalized by the Original Authority invoking Rule 7 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. The Commissioner (Appeals) upheld the Original Authority's order, prompting the appellant to appeal before the Tribunal.

The Tribunal, after hearing both sides, found that the issue was covered by a previous Final Order in the appellant's own case. Following Final Order No.71338/2018, the Tribunal determined that Rule 5 of Central Excise Valuation Rules, 2000 would be applicable in this case. Consequently, the Tribunal set aside the impugned order and remanded the matter back to the Original Authority. The Original Authority was directed to re-determine the duty payable by the assessee or the refund payable to the assessee by invoking the provisions of Rule 5 of Central Excise Valuation Rules, 2000.

In conclusion, the Tribunal allowed the appeal by way of remand, providing clarity on the application of Rule 5 of Central Excise Valuation Rules, 2000 in the circumstances of the case.