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TMI Blog2022 (3) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... such or after use. It is in the later case that Rule 3(5A)(a) of CCR, 2004, comes into picture. When the inputs/ capital goods are no longer required by the manufacturer, the manufacturer disposes of them. In the present case, apparently and admittedly it is not the case of the appellant because the appellant has transferred the capital goods/ generator set from one of its unit to its another unit. If such a generator set would have been cleared by the appellant to any other unit, appellant definitely would have to reverse the proportionate credit on the depreciated value after deducting 2.5% of credit for each quarter or part of the use of machine from the date of taking of such credit as is apparent from Rule 3 - Also the proviso to Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral water and aerated water and was also availing CENVAT Credit facility on inputs, capital goods, and input services under the CENVAT Credit Rules 2004 (hereinafter refer to as CCR, 2004). During the course of audit and on verification of the sales ledger, it was observed that the appellants had purchased capital goods valued at ₹ 26,72,414/- vide invoice dated 24.03.2004. The said capital goods were cleared by them on declaring the value of ₹ 6,14,322/- vide invoice dated 27.04.2017 to its another unit i.e. M/s Hindustan Coca Cola Beverages Pvt. Ltd., Dasna Hapur (appellants unit is in Jaipur). The Department observed that the appellant has not paid the amount equal to the duty leviable on transaction value on the clearance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no question of sale thereof. The value of ₹ 6,14,322/- as has been assigned during the said stock transfer is mentioned to be the value as required to be notionally affixed in terms of accounting standards. Hence, same cannot be considered as the transaction value. The findings of the Adjudicating Authority Below considering the said value as transaction value and applicability of proviso to aforesaid Rule are alleged to be wrong. It is further submitted that the extended period of limitation has wrongly been invoked by the department. There is no question of any suppression of facts nor of any malafide intent. Hence, the penalty has also been wrongly imposed. The order is accordingly proposed to be set aside and appeal is prayed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k into the Rule which reads as under: 3[(5A) (a) If the capital goods, on which CENVAT credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely :- (i) for computers and computer peripherals : for each quarter in the first year @ 10% for each quarter in the second year @ 8% for each quarter in the third year @ 5% for each quarter in the fourth and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le, as quoted above provides that if the amount so calculated by the above method is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value. 8. As emphasised by the learned Counsel, the transaction value provided under section 4(3) (d) of Central Excise Act, 1944 reads 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e it is clear that the possession of the generator set has been transferred from one person to another and from one place to another for cash. The definition don t exempts the transfer between two sister units. 10. Further the appearance of word sale in Rule 9 ad 10 of Central Excise Valuation (Determination of price of Excisable Goods) Rules, 2000 dealing with the value of finished goods cleared to related units recognised the clearance to related unit as sale. The adjustment of accounts in respective unit becomes consideration received by the recipient and accordingly the entire process of transfer of the operation of goods is a transaction of sales and the values as mentioned in the invoice becomes the transaction value. 11. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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