9911796707
TMI Blog1997 (8) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... lways, Government of India engaged in the production of Diesel Engines and Diesel Shunters. Diesel Engines manufactured by the factory are mainly being consumed by them captively in the production of Diesel Shunters. The appellants were availing the benefit of Notification No. 120/75-C.E., dated 30-4-1975 for payment of duty on the Diesel Shunters, i.e. duty on the Diesel Shunters was being paid by them on the invoice-value. Apart from the captive consumption of the Diesel Engines in the manufacture of Diesel Shunters, the appellants were also making a few sales of Diesel Engines to the other units, mostly Public Sector Undertakings. The price at which the Diesel Engines were sold to the other Public Sector Undertakings was contractual pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Diesel Shunters. It had very rarely happened that on demand being made, they sold the Diesel Engines to the outside parties. He submitted that such contracted prices for Diesel Engines cannot be made the basis for adopting the same prices in the captively consumed engines. He submits that the Department has treated the stray sales of Diesel Engines as a wholesale trade overlooking the fact that the appellants were never engaged in the wholesale trade of such goods. He also submitted that during the period for about eight years, they have manufactured a total of 313 Diesel Engines out of which only seven have been sold to the other Public Sector Undertakings. He concluded that the appellants during the relevant period were working un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue submitted that Rule 6(b)(i) of the Central Excise (Valuation) Rules, 1975 is very clear and lays down that where excisable goods are not sold but are used captively, the value of the same would be based upon the value of the comparable goods produced or manufactured by the assessee or by any other assessee. He submitted that in the instant cases, the authorities below have adopted the value of the Diesel Engines manufactured by the appellants, which are sold to the outside parties. As such, there is no scope for making any adjustment etc. as the goods captively consumed and sold to the outside parties are identically the same. In support of his submissions, he relied upon the Tribunal s judgment in the Amod Stampings v. Collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the value, otherwise arrived at on the basis of cost data. Even if the price is adopted on the basis of cost data in terms of Rule 6(b)(i), the reasonable margin of profit is required to be added. We find that by adding the 12% margin of profit at the time of sales of Diesel Engines. It can be reasonably concluded that the Diesel Engines are capable of being sold at 12% margin of profit. By adding that margin of profit, prices would more or less come at the same at which they have been sold to the outside parties. As such in the peculiar facts and circumstances of these cases, we do not find any justification in disturbing the Orders of the authorities below. We may incidentally observe here that the payment of duty under Notification No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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