2013 (10) TMI 1302

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..... Meena, Addl. Comm. (AR), for the Respondent. ORDER The appeal is directed against Order-in-Appeal No. RK/219/NGP-I/2004, dated 19-8-2004 passed by Commissioner of Central Excise (Appeals), Nagpur. 2. The appellant, M/s. Sharda Ispat Ltd. undertook conversion of M.S. Billets into Tor Steel (Saliya) received from National Thermal Power Corporation Ltd., (NTPCL in short) on job work basis. Th .....

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..... ant did not indicate the freight charges separately and also what was permissible to be deducted was only the actual cost of transportation and not equalized freight @ Rs. 600/- per MT. Accordingly, a differential duty of Rs. 40,673/- was confirmed against the appellant along with interest thereon and also imposing equivalent amount of penalty under Section 11AC of the Central Excise Act, 1944, ap .....

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..... the present case, the value on which the appellant has discharged the excise duty liability is higher than the value arrived, following the Ujagar Prints formula. Thus, the appellant has discharged the duty liability correctly. As regards the invocation of Rule 5 of the Central Excise Valuation Rules, the ld. Counsel submits that the said Rule would apply only when the goods are sold. In the pres .....

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..... considered the submissions made by both the sides. 6.1 Rule 5 of the Central Excise Valuation Rules, as stood at the relevant time reads as follows : "Where any excisable goods are sold in the circumstances specified in clause (a) of sub-section (1) of Section 4 of the Act except the circumstances in which the excisable goods are sold for delivery at a place other than the place of removal .....

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..... sactions. In other words, there is no sale transaction involved. Therefore, the contention of the ld. Counsel for the appellant that Rule 5 cannot be invoked ab initio is correct. In any case, the appellant has discharged excise duty liability on a price which is equal to or higher than that arrived under the Ujagar Prints formula and this is not disputed. If that be so, the appellant has discharg .....

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