2017 (11) TMI 1249

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..... f" liable to Central Excise Duty. They have cleared the excisable goods to their depots situated in various places. They have discharged duty liability at the time of clearance from the factory. However, since the goods were cleared through depots and thereafter, sold to independent buyers, the provisions of Rule 7 of Central Excise Valuation Rules, 2000 will come into operate. The appellants followed the said rule. The dispute in the present appeals relate to small portion of their clearances, which the department alleges did not suffer Central Excise Duty on proper value. It is alleged that the appellants did not discharge duty on some of the clearances based on the sale value of similar goods from the depot at or about the same time, whe .....

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..... re is no short-levy on this count. 3.   The learned counsel strongly objected to the demand for extended period. The only count on which the demands are sustained for extended period is that the appellants did not provide the invoices for depot sale and admitted of delay in furnishing the same. The learned counsel submitted that it is only based on their documents, the Revenue issued the present demand. However, in more than 99% of the cases, there could be no variation in applying the depot sale price to the clearance at the factory gate. However, wherever there is no sale from the depot, based on a revised selling price, the Revenue has taken-up the nearest sale price of depot, which in some instances happened to be higher. Thi .....

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..... ility of Rule 7 in the present case is not subject-matter of dispute. The appellants are only pleading that they have Uniform Pricing System and issues circular based on LMEP and the same is applicable at the same time both to the factory gate sale as well as depot sale. In certain fortnights, when there is no sale from a particular depot, the Revenue proceeded to take the value of preceding fortnight to arrive at the conclusion of short-levy. We note, in terms of Rule 7, the transaction value shall be based on goods sold from depot. Though, the appellants may have a circular fixing the price for a particular fortnight, in the absence of any sale, the nearest sale price is correctly adopted by the Revenue. We find no infirmity in such pract .....

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