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TMI Blog2013 (1) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant is engaged in the manufacture of petroleum products viz. Motor Spirit (M.S.), High Speed Diesel (HSD/Aviation Turbine Fuel (ATF), Furnace Oil, (FO), Light Diesel Oil (LDO), Superior Kerosene Oil (SKO), etc. During the relevant period, the appellant was clearing its products to its own depots as also to the other oil manufacturing companies. 3. Case of the department is that the volume of the petroleum product undergo change with change in temperature. The appellant cleared its products to its own depots at room temperature of the specified rate per litre. However, in respect of their sales to the other oil manufacturing companies, though the appellants charge the same price per litre based on notional volume of the oil product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notional quantity of the goods in question at room temperature for fixation of price. Therefore, the volume of the room temperature ought to have been taken for calculating the price of the goods. 6. We have considered the rival contentions and perused the records. It is undisputed that the appellant has supplied goods to other oil manufacturing companies on payment of excise duty calculated on transaction value of goods supplied at 15ºC. 7. Thus only question for determination is whether or not by converting the actual volume of oil at room temperature to notional volume at 15ºC for the purpose of fixing the price to be charged by other oil manufacturing companies amounts to undervaluing the product to evade excise d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise duty chargeable, the price charged if it is sole consideration for the sale, would be the transaction value. Admittedly, in the instant appeals, the goods have been cleared on payment of excise duty as per the price declared in the invoices. It is not the case of the department that other manufacturing companies to whom the oil was supplied at the rate based on the volume at 15ºC are the related parties. It is also not the case of the Revenue that invoice price was not the sole consideration for sale or the appellant/assessee has received any other additional consideration apart from the declared sale price. Thus, in our considered view, the appellant has rightly paid the excise duty as per transaction value in terms of Section 4 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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