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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 ..... vering the period from July 2000 to June 2006 on what was alleged to be additional consideration of Rs. 26,07,25,721 in the clearance of 'silico manganese' and 'high chrome ferro manganese' to M/s Steel Authority of India Ltd. 2. Narrating the background to this appeal, Learned Authorised Representative submitted that the respondent had entered into a 'conversion agreement' 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 Rs. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (120) ELT 24 (SC)], should have guided the decision of the original authority. 3. Learned Counsel for respondent relies upon the decision of the Hon'ble Supreme Court in Commissioner of Central Excise, Indore v. S Kumars Ltd [2005 (190) ELT 145 (SC)] and the sales invoices effecting clearance of the same finished goods to independent parties at rates entirely 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. In the circular dated 1st July 2002, relied upon by Learned Counsel, it is clearly indicated that 'where goods are transferred to a sister unit or another unit of the same company valuation will 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 suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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