9911796707
TMI Blog2019 (7) TMI 1614X X X X Extracts X X X X X X X X Extracts X X X X ..... e said value. Section 4 of Central Excise Act, 1944 speaks about valuation of excisable goods for the purposes of charging the duty of excise. Sub-section 1 makes it clear that where price is the sole consideration for the same at the time and place of removal and parties are not related, the said price shall be the transaction value. In rest of the other cases the value shall be determined in the manner as prescribed - Rule 7 of Value Determination Rules though has been impressed upon by the adjudicating authority, but the said rule cannot be applied in isolation. The rules have to be read in reference to the context of the specific provision in the statute. Thus, Rule 7 has to be read in reference to the context of above quoted Section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RACHNA GUPTA The Appellants are engaged in manufacturer of Sheets and Tiles etc. not containing asbestos. 2. During the course of audit of records of the Appellants conducted by internal audit party of the Central Excise Audit Commissionarete, Jaipur for the period from March, 2014 to July, 2015, it was observed that the Appellant was selling goods through their four depots situated at Makshi, Silvassa, Bhuj and Arakonam. They were observed to have discharged the Central Excise duty on the transaction value, as was determined at the factory gate, despite that there was a price difference between the assessable value determined at factory gate from the assessable value determined at their four depots (as observed from the depots ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abundantly clear that there is no price difference between the assessable value determined at the factory gate of assessee and the assessable value determined at their four depots. As such there is no short payment of Excise duty as is alleged. In view of the submissions and the aforesaid documents, learned Counsel for Appellant has prayed for setting aside the order of Commissioner (Appeals) and for the appeal to have been allowed. Learned Counsel has relied upon the following case laws: 1. S.C. Environ Agro India 2013-298-ELT-257-T.M 2. Malwa Cooton Spinning 2008-224-ELT-425-T.Del. 5. While rebutting these arguments, learned Departmental Representative has justified the order under challenge. It is mentioned that as per Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, 1944 defines the transaction value to mean as follows: (d) transaction value means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter; but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually paya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emoval for the Appellant. It is not denied that the value of depots invoices had the element of excise duty as was paid at the time of clearance from the factory gate. The transaction value has to be the basic price not including the said excise duty. 8. We observe that the document of details of prices at factory rate, the amount of excise duty paid and the prices at the depot have been provided by the Appellant to the Tribunal. 9. We are of the opinion that these documents need verification at the end of the adjudicating authority below, so as to conclude about the value in depot invoice as a whole to have the assessable value/transaction value plus the amount of excise duty or not. With this observation, we hereby remand the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
