2007 (10) TMI 177

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..... red certain spares to EFL who sell them - respondents pay duty on the basis of the sale value of EFL - but in respect of spares cleared to EFL who use them in their AMC, the value adopted for payment of duty is u/r 8 (cost construction method) – No error in assessee valuation – Revenue seeking duty to be paid on sale value of EFL is wrong
Dr. S.L. Peeran, Member (J) and Shri T.K. Jayaraman, Mem .....

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..... y duty on the basis of the sale value of EFL. However in respect of this spares cleared to EFL who use them in their maintenance contract with the customers, the value adopted for payment of duty is under Rule 8 of the Central Excise Valuation Rules, 2000. The original authority held that the respondents should pay duty even in such cases on the basis of sale price of EFL in terms of 10 Rule A rea .....

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..... ondents. 4. We heard both sides. According to the Revenue Rule 8 is applicable only to cases where the goods are used for consumption in the production or manufacture of other articles. In the instant case EFL is not engaged in the production or manufacture of any articles. Therefore, it was argued that Rule 8 could not be applied and the correct rule would be Rule 1OA read with Rule 9 of the Cen .....

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..... 2 [2000 (119) E.L.T. T 221] clarifying certain points relating to the new valuation provisions made effective from 1-7-2000. 2. The Board has received a number of references from the field formations as well as representations from the trade associations about certain doubts still persisting in the minds of the field officers points of doubt are being clarified in the Table enclosed. 3. Field .....

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..... ture' of the goods. 5. This case is also similar to the case, which is clarified above. When there is not sale as there is no specific rule to cover the same, Rule 8 would be the most appropriate. The learned JDR relied on certain case laws, which are not very relevant for the issue at hand. Therefore, we do not find any infirmity in the impugned order, which has adopted the Cost Construction Met .....

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