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TMI Blog2011 (5) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... vor of assessee. - E/2342 of 2005-Ex. - 731/2011-EX(PB) - Dated:- 12-8-2011 - Shri D.N. Panda, Shri Mathew John, JJ. Appearance: Appeared for Appellant : Shri Alok Arora, Advocate Appeared for Respondent : Shri B.K. Singh, Jt. CDR Per Mathew John: The Appellant is engaged in the manufacture of stainless steel cold rolled pattas/pattis, circles, utensils and waste and scrap of aluminum falling under chapter sub-headings 7220.20, 7220.40. 7323.90 and 7204.20 of the Central Excise Tariff. The raw material for manufacture of the above items is stainless steel flats which were received on duty paid invoices. The flats were cut into pieces and converted into pattas/pattis by hot-rolling. During the impugned period the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposed. The SCN was adjudicated vide order dated 16-08-01 and the duty demanded was confirmed along with appropriate interest and penalty equal to the duty confirmed was imposed under Rule 173 Q read with section 11AC. 4. The Appellant contested before the Commissioner (Appeal) the method of valuation for determining the duty on the ground that the two invoices which were taken as basis for valuation were for sale of goods of superior quality and not of the quality used in making utensils. They were contesting that the value of circles consumed by them should be based on value of similar circles sold by them to unrelated buyers. The Appellant did not succeed before Commissioner (Appeal) because he ruled that the value of patta/patti sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her quality material was made. They submitted the copies of 34 invoices which they had mentioned before the Tribunal while passing the order dated 23-12-03. 7. The adjudicating authority observed that these invoices were issued to self and were not for sale of such goods to unrelated buyers and hence cannot be taken as a basis for arriving at the value of goods captively consumed. He also observed that there was no mention of any specific quality in the two invoices taken as basis by the Revenue. For these reasons the adjudicating authority confirmed the duty demanded in the first round of adjudication based on the value of pattas/pattis sold under the invoices 71 and 74. 8. Aggrieved by the order the Appellant filed an appeal with Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as basis for any valuation under Central Excise Rules. He further argues that the price at which aluminum circles are sold cannot form basis because what is being valued is pattas/pattis used in the manufacture of circles and not circles itself. The Ld DR argues that whatever be the order that may be passed by the Tribunal in this proceeding the Rule under which valuation is being arrived at should be made clear. 11. We have heard arguments on both sides and perused the record. 12. The initial observation that we want to make is that the exact Rule under which value is being determined is not mentioned or discussed in any of the orders passed earlier. We also want to record that this is a case where the assessable value is determined b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person other than a related person: [Provided that in determining the amount of reduction, due regard shall be had to the nature of the excisable goods, the trade practice in that commodity and other relevant factors] (b) where the excisable goods are not sold by the assessee but are used or consumed by him or on his behalf in the production or manufacture of other articles, by value shall be based- (i) on the value of the comparable goods produced or manufactured by the assesee or by any other assessee: Provided that in determining the value under this sub-clause, the proper officer shall make such adjustments as appear to him reasonable, taking into consideration all relevant factors and, in particular, the difference, if any, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the proviso, should have been made. If this method was not possible, there was the alternative of Rule 6 (b) (ii). The value arrived at should be reasonable considering the value at which circles manufactured from raw material of similar quality were sold by the Appellant to unrelated buyers. It is to be borne in mind that circles are products made from patta/patti with minimum further processing. 15. It is very disappointing, to say the least, that the lower authorities are not willing to look at the applicable Rules and state which Rule is being applied and for what reason. At the same time, a semblance of following the Rules is shown by arguing that price of pattas/pattis and not the price of circles is to be considered since the go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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