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2018 (2) TMI 416 - AT - CustomsValuation - assessable value to be adopted for demand of Central Excise Duty in the case of Superior Kerosene Oil (SKO) (PDS) and Liquid Petroleum Gas (LPG) (Domestic) - Revenue was of the view that the appellant had paid duty on subsidized price instead of paying duty on the Refinery Gate Price - Held that - the similar issue for a different period pertaining to the appellant came up before the Tribunal in the case of Kochi Refineries Ltd. Versus Commissioner of Central Excise, Cochin 2017 (4) TMI 323 - CESTAT BANGALORE in which the Tribunal has held that the price or cost paid/received to/by an assessee or manufacturer (from independent buyer) constitutes the assessable value / transaction value for the purpose of levy of Central Excise duty - impugned order upheld - appeal dismissed - decided against appellant.
Issues:
Assessable value for demand of Central Excise Duty in the case of Superior Kerosene Oil (SKO) (PDS) and Liquid Petroleum Gas (LPG) (Domestic). Analysis: The appeal was filed against the Order-in-Appeal No. 342/2006 dated 31.05.2006 regarding the assessable value for Central Excise Duty on SKO and LPG. The appellant paid duty based on the subsidized price, while the Revenue contended that duty should be paid on the Refinery Gate Price, leading to a differential duty claim. The appellant argued that a CBEC clarification supported using the subsidized price as the assessable value. However, the Revenue maintained that the CBEC circular lacked legal force. The Tribunal referred to Section 4(1) of the Central Excise Act, emphasizing that duty is charged on transaction value, which must meet specific conditions. The Tribunal found that the subsidized price did not fulfill these conditions, thus not qualifying as the transaction value for duty calculation. In a previous case, the Tribunal had ruled against the appellant, upholding the duty calculation based on the Refinery Gate Price. The Tribunal cited Supreme Court and Tribunal decisions emphasizing that the price paid to the manufacturer constitutes the assessable value for Central Excise duty. The Tribunal dismissed the appellant's argument that the subsidized price should be considered the transaction value, as it did not meet the legal criteria outlined in Section 4(1) of the Act. The Tribunal concluded that the duty should be charged based on the price paid by the Oil Marketing Companies to the appellant, excluding the subsidized price. Ultimately, by following the earlier decision in the appellant's case, the Tribunal upheld the impugned order, leading to the dismissal of the appeal. The judgment reiterated the legal principle that the price paid to the manufacturer forms the assessable value for Central Excise duty, emphasizing the importance of meeting specific conditions for transaction value determination under the Central Excise Act.
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