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TMI Blog2018 (12) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... he cost of conversion is not market-determined but specifically agreed upon by the two entities - the special provision of rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 to be invoked to the exclusion of all others. Rule 11, read with rule 6, of the same rules are intended to cover situations of clearances in the normal course to independent buyers and hence not applicable in the present instance. There is no allegation that the computation of value under rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 has ignored or excluded any includable element - Indeed, the cost of the raw material, subsumed in the ‘slag’ has, undoubtedly, been included in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with M/s Steel Authority of India Ltd under which the latter was required to supply, free of cost, high grade manganese ore , low grade manganese ore and coke to be converted for consideration of ₹ 15,000 per metric ton of the finished product. It was also informed that the consumption efficiency was embodied in the agreement with the rider that cost of all other material and inputs are to be borne by the respondent. Pointing out that the respondent had retained the by-product, i.e., high manganese ore slag and low manganese ore slag , that emerged in the process of manufacture while clearing the finished goods, Learned Authorised Representative contended that this was tantamount to additional consideration which had not been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rely different from that in the impugned transactions to establish that the respondent was acting as contract manufacturer with a special relationship. It was also pointed out that similar demands for subsequent periods had been dropped by the original authority without challenge by Revenue according finality to the binding precedent of valuation under rule 8 in terms of the decision of the Hon ble Supreme Court in Commissioner of Central Excise, Hyderabad v. Novapan Industries Ltd [2007 (209) ELT 161 (SC)]. Placing reliance on circular no. 643/34/2002-CX dated 1st July 2002 of Central Board of Excise Customs which, in item no. 5, directed the manner in which valuation of captively consumed goods was to be computed, she contends that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be done as per the proviso to rule 9. and the said proviso requires that the value shall be determined in the manner specified in rule 8 where the related person does not sell the goods but consumes such goods in the production or manufacture of articles. The assessment adopted by the original authority is strictly in consonance with this. The decisions relied upon by Learned Counsel to support the valuation adopted by the respondent also sustain recourse to rule 8 in these particular circumstances. 5. Not unsurprisingly, there is no allegation that the computation of value under rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 has ignored or excluded any includable element. Indeed, the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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