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TMI Blog2019 (3) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... o related persons and partly to independent buyers and that it covers only those cases where all the sales are to related persons only - it would be in the fitness of things that the matter is once again re-looked into by the adjudicating authority Penalty - Held that:- Irrespective of the final outcome of such de novo adjudication, it is noted that the entire issue has emanated out of an interpretational dispute on the applicability or otherwise of Rule 9 of the Central Excise Valuation Rules. This being so,the imposition of penalties under Section 11AC of the Act is not warranted. Appeal allowed in part and part matter on remand. - Appeal Nos.: E/40697 & 41951/2013 - Final Order Nos. 40492-40493/2019 - Dated:- 14-3-2019 - Shri Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellants and M/s. Sri Kaliswari Fire Works Pvt. Ltd. are associated and related persons. 2.3 In adjudication, the Original Authority confirmed the duty demand and imposed equal penalty under Section 11AC of the Central Excise Act, 1944. The Commissioner (Appeals) has upheld the adjudication orders and rejected the appeals. The details of the demands are as under : Sl. No. Impugned Order and Dt. Appeal No. Period of dispute Duty demanded (in Rs.) Penalty imposed (in Rs.) 1. Order-in-Appeal No. 307/2012 dt. 21.12.2012 E/40697/2013 April 2008 to October 2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applied when the goods are partly sold to independent buyers. (iv) That there are no specific provisions for valuation of the goods cleared to independent buyers as well as to related persons to arrive at the assessable value for the goods cleared to related persons. Therefore, Rule 11 is applicable to the facts of the case. (v) As per Rule 11, valuation of excisable goods is to be done using reasonable means consistent with the principles and general provisions of these rules and Section 4(1) is applicable, which states that in other cases i.e. which include sale made to independent buyers as well as to related persons. In that circumstance, the value would have to be determined as per Rule 11 of the Central Excise Valuation Rules. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be applied in such cases directly since it covers only those cases where all the sales are to related buyers only. (viii) Without prejudice to the above submissions, it is submitted that as per proviso to Rule 9, where the related person does not sell the goods but uses or consumes such goods in the production or manufacture of articles, the value shall be determined in the manner specified in Rule 8. In this case, M/s. Sri Kaliswari Fire Works has consumed the Aluminium Powder in the manufacture of fireworks. Therefore, the demand confirmed in the impugned order is liable to be set aside. (ix) It is submitted that, the filling of Price List is dispensed with and the approval of Price List is not necessary unlike Part II Price L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion or manufacture of articles, the value shall be determined in the manner specified in rule 8. 7. We find that the CBEC in the Circular dated 01.07.2002 relied upon by the Ld. Advocate for the appellant, has clarified that Rule 9 cannot be applied in such cases when goods are sold party to related persons and partly to independent buyers and that it covers only those cases where all the sales are to related persons only. 8.1 In the circumstances, it would be in the fitness of things that the matter is once again re-looked into by the adjudicating authority. So ordered. In such de novo adjudication, the adjudicating authority shall take into account the submissions and contentions of the appellants in paragraph 3 supra. 8.2 I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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