9911796707
TMI Blog2015 (4) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 passed by the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT), West Zonal at Mumbai. Before the CEGAT, the respondent herein had preferred an appeal against the demand in respect of excise duty which appeal has been allowed by the CEGAT and excise demand is quashed. The respondent is engaged in the manufacture of motor vehicle parts from the raw material supplied by the customers of the goods on labour charges basis. In essence, thus, the respondent undertakes the job work. After the manufacturing of the motor vehicle parts, the same are supplied to the customers who had placed the orders for the job work. The customers to whom the motor vehicle parts are supplied are used by those customers in the manufacture of motor veh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the production or manufacture of other articles. In the present case, first condition is undoubtedly satisfied as the goods are not sold by the respondent. However, second condition is not at all met or fulfilled inasmuch as the goods are not used by the assessee for consumption either by him or on his behalf in the production or manufacture of other articles. As stated above, these goods are supplied to the manufacturer of the motor vehicles. Learned counsel for the appellant, however, referred to Rule 9 and submitted that the proviso to the said Rule would attract the applicability of Rule 8 in the present case. In order to appreciate this argument, we take note of Rule 9 which is reproduced below: "RULE 9: When the assessee so arra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Rule would be applicable only in those cases that assessee is related in the manner specified in either of sub-clause (ii), (iii) or (iv) of clause (b) of sub-section (3) of Section 4 of the Act and not in those cases where the person is related in the manner as stated in clause (i) thereof. In those cases where Rule 9 is applicable, for the purpose of valuation, normal transaction value at which such goods are sold by the related person, is to be taken as the value of the goods. Proviso becomes applicable only when goods are not sold by the related person at all and used or consumed for home production. As there is no sale transaction by the related person, question of value thereof will not be available and therefore, to arrive at the v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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