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TMI Blog2019 (2) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... lage, Rangareddy District and for rerolling products at Kokapet village, Rangareddy District. Appellant cleared MS ingots manufactured by them in Gaganpahad village to rerolling division at Kokapet village for manufacturing rerolled products. Appellant also clears MS ingots manufacture to other independent buyers. In both the clearances, appellant discharged excise duty on the assessable value on which the goods were cleared to independent buyers. The case of the revenue in the show cause notice is that the clearances effected by appellant to rerolling division should have been valued under Rule 8 of the Central Excise Valuation Rules, 2000 by arriving at cost construction basis and add to that profit margin. The said show cause notice alle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods cleared to independent buyers. 4. Learned departmental representative, on the other hand, submits that when goods are cleared to sister concern, for further manufacture of excisable goods, provisions of Central Excise Valuation Rules, 2000 get attracted and Central Excise Duty needs to be discharged on the value arrived at cost construction basis. He would submit that the cost construction basis which has been considered by the lower authorities in the adjudication order is arrived from the balance sheets filed by the appellant i.e., to say allegation of undervaluation for the clearances made to sister concern is worked out by the revenue from the balance sheet. It is his further submission that the valuation rules are very clear inasm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods cleared to independent buyers. 6. It is the case of the revenue and the adjudicating authority's findings that appellant has undervalued the goods cleared to their rerolling division. This allegation is based upon the working of the authorities from the balance sheets supplied by the appellant. In our view, the findings of the adjudicating authority are unsustainable on the face of it. If the revenue authorities are not finding fault with the assessable value on which Central Excise duty is paid, when cleared to independent buyers, in our view, the said value needs to be considered as a correct assessable value. This is the law which has been decided by the larger bench in the case of Ispat Industries Ltd (supra) wherein in Para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im in the same factory (captive consumption) or (b) where such goods are transferred to another factory for consumption in the manufacture of other articles on behalf of the assessee. In this case, it is not the case of the revenue that the goods were transferred to other units for manufacture of other articles on behalf of the assessee/appellant, i.e. the Dolvi Unit. We agree with the assessee's contention that the expression 'assessee', wherever it appears in the Central Excise Rules, applies to a particular factory, which is why different units belonging to one company are separately registered and separately assessed to duty. Since the assessee in the present case is the Dolvi plant and it is not the revenue's case that the other three ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ratio of the law settled by the larger bench is binding on us and accordingly, we hold that in the case in hand, there being no dispute of the assessable value cleared to independent buyers, the same value having been considered by the appellant for the clearances made to the sister concern is correct and cannot be called out for revaluating the clearances made to sister unit. The said law is followed by the Tribunal in the case of Handy Wires Pvt Ltd [2015 (329) ELT 169], Jay Corporation [2015 (317) ELT 353]. 9. We also find strong force in the contentions raised by the learned counsel that the clearances which were made by the appellants to the sister unit on payment of duty and sister concern is availing the CENVAT credit of such duty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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