9911796707
TMI Blog2015 (4) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... ling under chapter sub-heading numbers 5403.32 of CEATA,1985. During the relevant period i.e. 01.07.2000 to 31.05.2004 & January 2005 to Jan.2006, they had manufactured & cleared the said goods from their factory to various depots resorting to provisional assessment, from where ultimately such goods were sold to the customers. It is alleged that on account of incorrect determination of assessable value under Section 4 of Central Excise Act, 1944 read with Rule 7 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, on finalization of provisional assessment, there was short payment of duty. Fourteen periodical show cause cum demand notices were issued to the respondent alleging short payment of a total duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Later, the respondent has adopted the depots selling price nearest to the time of removal of the goods from the factory and paid the differential duty accordingly. He submits that the department has accepted the depot sale price as on the date of removal or before the date of removal from the factory to depots. However, demand notices were issued where the nearest time of sale was considered for determination of assessable value, after the date & time of removal of the goods under assessment from the factory to depots. The Ld. Advocate citing an example has submitted that while clearing the goods from factory to the depot, on 01.07.2002 if they have adopted the price at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from the depot was made on 8.5.2001 at the rate of Rs. 5,500/- per kg. The rate of Rs. 5,500/- per kg. continued from 8.5.2001 to 5.6.2001 in invoices No.1 to 23. We find that the transaction value of such goods sold from the depot at or about the same time (during the period 23rd April 2001 to 3rd May 2001) is not available. Therefore, under Rule 7 of the Valuation Rules, the value of the goods under assessment shall be the transaction value of the goods sold from the depot at the time nearest to the time of removal and in the present case, the time nearest to the period of 23.4.2001 to 3.5.2001 is 8.5.2001. We, therefore, hold that the lower authorities have rightly ordered the assessment of the goods at Rs. 5,500/- per kg. at which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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