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TMI Blog2005 (4) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... E.L.T. 113 (S.C.)]. 3.We have perused the records and considered the submissions made by both sides. 4.The contention of the Revenue is that parts which are used in in-house production are required to be assessed at the value at which the same parts when sold are assessed in terms of Section 4(1)(2) of the Central Excise Act. As against this, the appellant has contended that the hydraulic gear and hydraulic distribution assembly that are captively consumed are not identical with those sold and therefore they should be valued separately under Rule 6 of the Central Excise Valuation Rules. It is also being pointed out that the Revenue s contention in the proceedings before the lower authorities was based on Rule 6 (comparable goods) of the Valuation Rules. 5.With regard to the differences in the products, it is being emphasized that the captively consumed goods are not packed in the same way as the parts which are sold in the spare parts market, the difference being that, while the goods cleared as spare parts are packed, the parts cleared for captive consumption are removed from the hydraulic gear and hydraulic distribution assembly Division to the Tractor manufacturing divisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 30-11-1990 for the following items : (i) Hyd. Gear pump @ Rs. 801/- PA. No. 8/90 dt. 30-11-1990 (ii) Hyd. Dist. Assy. @ Rs. 1000.25 P/L No. 9/90 dt. 30-11-1990 And whereas the said M/s. Escorts Ltd. (Hyd. Div.,) have also submitted their price lists for the same goods to be sold through M/s. Escorts Ltd. (Spare Part Div.) Faridabad at the following rates. Hyd. Dist. Assy. @ Rs. 1344.00 P/List No. 6/90 dt. 12-11-1990 Hyd. Gear Pump @ Rs. 1056.65 P/List No. 11/90 dt. 14-2-1991 And whereas the Section 4(1)(a)(iii) provides that if the goods are generally not sold by the assessee in wholesale market except or through related persons, the normal price of the goods sold by the assessee to or through such related person shall be deemed to be the price at which they are ordinarily sold by the related person to independent buyers. And whereas the said M/s. Escorts Ltd. (Hyd. Div.) have sold their goods to M/s. Escorts Ltd. (Tractor Div,) at lower price than the prices charged from M/s. Escorts Ltd. (Spare Parts Div.) at which the goods are normally sold to the independent buyers and as such have short paid Rs. 14,18,537.80 p. (BED Rs. 13,02,589.48 + SED Rs. 1,15,94 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., (Spare Parts Divn.) another sister Division of the same company. Therefore, the wholesale price of these goods which were sold in the market should have been the assessable value of the goods used captively by M/s. Escorts Ltd., Tractor Division, Faridabad in terms of Rule 6(b)(i) of Central Excise Valuation Rules, 1975. On being pointed out to the party, the 5. party filed price list in Part VI with effect form 12-3-1993 amending the earlier approved price list dated 18-11-1992 by filling up the proforma A of said price list. Accordingly they started paying Central Excise duty on the basis of wholesale price for those..................being used captively by M/s. Escorts Limited. Whereas in terms of Rule 6(b)(1) of Central Excise (Valuation) Rules, 1975 read with Section 4 of the Central Excise Salt Act, 1944 ......assessable value of excisable goods under assessment.......Determined under Rule 4 or Rule 5 and where the excisable goods are not sold by the assessee but are used or consumed by him or on his behalf in the production of other articles, the value shall be based on the value of the comparable goods produced or manufactured by the assessee or by any other a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere could not be two RG-1 stage of a final product depending on the buyers. Therefore, RG-1 stage of their final products either should have been in loose and naked condition or in a duly packed condition. Moreover, they have failed to produce any such evidence during the course of proceedings of this case by which it could be shown that they supplied goods to the tractor div. in a loose and naked condition. Therefore, the above contention of the party that value on cost account basis merits to be taken as assessable value under Section 4 of Central Excises Salt Act, 1944 is not convenience do not accept the same accordingly. However, I further observe that Section 4 of Central Excises Salt Act, 1944 states that assessable value of the goods shall be the normal price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal where the buyer is not a related person and the price is the sole consideration for the sale. But as already discussed in the preceding paragraphs they sold the goods to their related persons and had filed price lists accordingly in Part IV which attracts provisions of Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ginal No. 17/93 of 8-4-1993 rejected the various contentions of the appellants and held the goods identical to those supplied to their spare part division vis-a-vis open market while passing the impugned order, the Deputy Collector has referred to the same and also confirmed the demands. Thus the fact of the matter is that there exist 2 orders (one of the Deputy Collector and the other of Collector) holding that the goods involved are identical admitting of no price differentiation between the captively consumed and issued to the wholesale market and that the normal price shall be the correct basis for discharging duty liability on these goods. It is contended that the appellants have since gone to the Hon ble CEGAT against Collector Central Excise Delhi s adverse order with no interim relief in their favour. Against this background, there is no merit in the appellants plea that the instant matter on the analogy of the earlier order he remanded to the Deputy Collector considering that a superior authority has since adjudicated the matter. It is only the period involved which is different in this case. It is essentially a valuation matter. It is a settled law that different no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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