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TMI Blog2020 (1) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... ption - It is a case of the appellant that such goods must be valued at the rate of 110% of the cost of production as per Rule 8 of Central Excise Valuation Rules regardless of fact that the identical goods were also sold to independent buyers at a higher price. HELD THAT:- After 2000, the Central Excise Valuation under Section 4 has been revised and the concept of normal price has been replaced with the concept of transaction value . In other words, with respect to each sale the value has to be determined as per the value of that transaction independent of other transactions. If the price is higher in one invoice and lower in another invoice, the valuation for these invoices would be the corresponding prices. There is no concept of u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rinivas Kotni, Advocate for the Appellant Shri Bhasha Ram, Authorised Representative for the Respondent ORDER PER : P.V.SUBBA.RAO Both these appeals are filed with respect to the same appellant on the same issue and hence are being disposed of together. 2. The appellant is a manufacturer of motorcycles and spares thereof falling under Chapter 87 of the First Schedule to the Central Excise Tariff Act, 1985. One of their units is located at Rewari and another one at Gurgaon. Both these units are independently registered with the Central Excise Department. The issue for consideration in these appeals is the valuation of components manufactured by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to independent buyers. It is a case of the revenue that where is a sale price to independent buyers, the same should be adopted even for goods which are transferred to sister units for captive consumption. It is a case of the appellant that such goods must be valued at the rate of 110% of the cost of production as per Rule 8 of Central Excise Valuation Rules regardless of fact that the identical goods were also sold to independent buyers at a higher price. 5. At this stage, it would be appropriate to examine the question of valuation under the Central Excise Act. Section 3 of the Central Excise Act is the charging section which levies excise duties on excisable goods manufactured and produced in India. The rates at which th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sable Goods) Rules, 2000. The question in this case is where there is an independent sale and also captive consumption of identical goods, should the value for captive consumption be based on cost of production under Rule 8 or equal to the value of identical goods sold to independent buyers. Evidently, as they are different transactions, the values are different which should apply. This issue has also been clarified by the Board in Circular No. 643/34/2002-CX dated 1-7-2002. The clarification at Sr. No. 5 is as follows:- 5. How will valuation be done in cases of captive consumption (i.e consumed within the same factory) including transfer to a sister unit or another factory of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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