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2015 (12) TMI 1259 - AT - Central ExciseValuation of the goods cleared in DTA - Held that - Decisions in these cases were based upon the Tribunal s decision in the case of Morarjee Brembana Ltd. vs. Commissioner of Central Excise, Nagpur 2003 (2) TMI 100 - CEGAT, MUMBAI . The department has also filed Civil Appeal against the said order of the Tribunal before the honble Supreme Court. The Honble Supreme Court vide order 2015 (4) TMI 354 - SUPREME COURT has decided the appeal of Morarjee Brembana Ltd. In the same order, the honble Supreme Court has dismissed the Revenue s appeals filed in their own case. - Decided against Assessee.
Issues: Valuation of goods cleared in Domestic Tariff Area (DTA) and applicability of transaction value for assessment purpose.
In this case, the appellant, a 100% Export Oriented Unit (EOU) manufacturing Phthalic Anhydride, was clearing a portion of goods in the Domestic Tariff Area (DTA), leading to a dispute over the valuation of the goods cleared in DTA. The Revenue argued that the transaction value between the appellant and customers should be the assessable value, while the appellant contended that the CIF value of similar goods imported into India should be considered for assessment. The appellant relied on previous Tribunal decisions and Supreme Court rulings, including the case of Morarjee Brembana Ltd. The department cited circulars emphasizing the transaction value for assessment and referred to the Tribunal's decision in the case of Haryana Sheet Glass Ltd. The Tribunal analyzed the Supreme Court's decision in the Morarjee Brembana Ltd. case, which clarified that when excisable goods produced by a 100% export-oriented undertaking are allowed to be sold in India, the duty of excise should be determined based on the aggregate of customs duties applicable to like goods imported into India. The Tribunal agreed with this interpretation and held that the sale price charged to customers in India for the goods under assessment cannot be considered as a price in the course of international trade. Therefore, the Tribunal allowed the appeal filed by the appellant-assessee and dismissed the Revenue's appeal, emphasizing the correct valuation method based on the Supreme Court's ruling.
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