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TMI Blog2014 (4) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... ious dealers. The period of dispute in these appeals is from 01/10/2000 to 31/10/2001 and from 01/4/2001 to 30/11/01. The Department was of the view that during this period, in view of Rule 7 of the Central Excise Valuation Rules, 2000, the respondent were required to pay duty at the price at which the goods were sold from the depot which should also include the cost of transportation from the factory to the depots. On this basis, after issue of two show cause notices dated 22/10/2001 and 20/03/2002 respectively, the duty demands totalling Rs. 1,91,02,584/- alongwith education cess of Rs. 1,20,629/- were confirmed. On appeal being filed to Commissioner (Appeals), the Commissioner (Appeals) by common order-in-appeal No. 85-86/CE/APPL/KNP/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds would also include the cost of transportation from the factory gate to the depots and that, therefore, the impugned order is not correct. 4. We have considered the submissions of the learned Jt. CDR and have gone through the records of this case including the memorandum of Cross Objections filed by the respondent. The period of dispute in this case is from 01/10/2000 to 30/11/2001. During the period of dispute, the respondents were clearing their goods to depots on stock transfer basis from where the same were being sold to dealers. The point of dispute is as to whether the cost of transportation of the goods from the factory gate to the depots would be includible in the assessable value of the goods. According to the department, in vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sferred to a depot, premises of a consignment agent or any other place or premises (hereinafter referred to as 'such other place') from where the excisable goods are to be sold after their clearance from the place of removal and where the assessee and the buyer of the said goods are not related and the price is to the sole consideration for the sale, the value shall be the normal transaction value of such goods sold from such other place at or about the same time and, where such goods are not sold at or about the same time, at the time nearest to the time of removal of goods under assessment. 6. Thus, according to this Rule, when the excisable goods are not sold at the time and place of removal but are stock transferred to a depot or premi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference to their value, then, on each removal of the goods such value shall be, in a case where the goods are sold by the assessee for delivery at the time and place of removal, and the assessee and buyers of the goods are not related and price is the sale consideration for sale, be the transaction value. In any other case, where the goods are not sold at the time and place of removal, the value shall be determined in terms of provisions of Central Excise Valuation Rules, 2000. 7.2 Thus, in terms of Section 4 (1), the assessable value of the goods is the transaction value at the time and place of removal. The place of removal during the period of dispute, as mentioned above, covered only the factory or any other place or premises ..... X X X X Extracts X X X X X X X X Extracts X X X X
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