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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 ..... cise duty on transaction value of goods supplied at 15ºC. Held that:- For the purpose of calculating the excise duty chargeable, the price charged if it is sole consideration for the sale, would be the transaction value. 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 revenue that other manufacturing companies to whom the oil was supplied at the rate based on the volume at 15ºC are the related parties and 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, the appellant has rightly paid the excise duty as per transaction value in terms of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the volume at 15 C. As a result the volume of oil supplied get reduced and this result in lesser price than the price at which the oil is supplied by the appellant to its own depots. The department was of the view that by adopting aforesaid procedure, the appellants have undervalued their products in respect of goods cleared to other oil manufacturing companies with a view to reduce the excise duty incidence. Thus show cause notices raising the excise duty demand for differential in the transaction value were issued to the appellants which were adjudicated by the jurisdictional Commissioner vide respective orders-in-original Nos. 2/Comm./PKL/05, dated 31-1-2005 and No. 01/Comm./PKL/05, dated 27-1-2005 and duty demand based on the differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have a look on Section 4(1) of the Central Excise Act, which is reproduced thus :- 4. Valuation of excisable goods for purposes of charging of duty of excise. (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall (a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of goods are not related and the price is the sole consideration for the sale, be the transaction value; (b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed. 2[Explanation. - For t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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