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2023 (6) TMI 3 - AT - Central ExciseMethod of Valuation of Excisable goods - clearance of goods for captive consumption on the basis of stock transfer - determination of value as per Section 4(1)(b) of the Central Excise Act, 1944 read Rule 8 of the Central Excise Valuation Rules, 2000 - HELD THAT - During the course of adjudication the appellants have supplied the cost data supported by Chartered Accountant s Certificate for the period 2004- 05 and 2005-06. The adjudication order as well as the appellate authority s order also examined, there is no whisper about the certificates and cost data supplied by the appellants for these periods. Therefore, the matter needs examination at the end of the adjudicating authority to consider the cost data supplied by the appellants during adjudication. On the same issue Larger Bench of Tribunal in the case of ISPAT INDUSTRIES LTD. VERSUS COMMISSIONER OF C. EX., RAIGAD 2007 (2) TMI 5 - CESTAT, MUMBAI observed that The provisions of Rule 8 of the Valuation Rules will not apply in a case where some part of the production is cleared to independent buyers - The provisions of Rule 4 are in any case to be preferred over the provisions of Rule not only for the reason that they occur first in the sequential order of the Valuation Rules but also for the reason that in a case where both the rules are applicable, the application of Rule 4 will lead to a determination of a value which will be more consistent and in accordance with the parent statutory provisions of Section 4 of the Central Excise Act, 1944. There are no merits in grounds taken by the Revenue for filing this appeal - Appeal filed by the Revenue is dismissed.
Issues:
The issues involved in the judgment are the finalization of assessment based on a Larger Bench order of CESTAT, determination of duty liability, penalty imposition, and applicability of Central Excise Valuation Rules. Finalization of Assessment: The appeal was filed by the Revenue against the order-in-appeal directing finalization of assessment based on the Larger Bench order of CESTAT in the case of Ispat Industries Ltd. vs Commissioner of C. Ex., Raigad. The Tribunal remanded the matter back to the original authority for consideration based on the cost data submitted by the appellant. The original authority confirmed the differential duty liability, directed payment along with accrued interest, and imposed a penalty. The Commissioner (Appeals) set aside the Order-in-Original and directed finalization based on the CESTAT order, leading to the Revenue's appeal. Determination of Duty Liability: The original authority determined and confirmed the duty liability under Section 11A(2) of the Central Excise Act, directing payment along with interest and imposing a penalty. The appellant challenged this order before the Commissioner (Appeals), who upheld the duty liability determination. The Revenue appealed on the grounds that the Adjudicating authority followed the directions of CESTAT and finalized the assessment accordingly, contrary to the Commissioner (Appeals) setting aside the Order-in-Original. Applicability of Central Excise Valuation Rules: The dispute arose regarding the excisable value for goods cleared for captive consumption from one factory to another. The Revenue contested the valuation based on Section 4(1)(b) of the Central Excise Act read with Rule 8 of the Central Excise Valuation Rules. The Tribunal observed the need for examination of cost data supplied by the appellant during adjudication. A Larger Bench decision emphasized the sequential application of valuation rules, favoring Rule 4 over Rule 8 for consistent determination of value. The Commissioner (Appeals) directed the adjudication authority to reconsider the issue in line with the Larger Bench's decision. Decision: The Tribunal dismissed the appeal filed by the Revenue, finding no merits in the grounds presented. The judgment highlighted the importance of following the directions of CESTAT and applying the Central Excise Valuation Rules sequentially for accurate valuation determination, emphasizing consistency with statutory provisions.
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