2008 (4) TMI 300

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..... s not acceptable – held that since there is no sale but only removal of inputs outside the factory, Sr. No. 14 of the Circular will be applied – appeal of assessee is allowed - E/22/2008 - A/666/2008-WZB/AHD - Dated:- 2-4-2008 - Ms. Archana Wadhwa, Member (J) and Shri B.S.V. Murthy, Member (T) Shri S.M. Pandit, Authorised Representative, for the Appellant. Shri M.M. Mathkar, JDR, for .....

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..... issued under Sr. No. 5 of the Circular cited above, which is reproduced below : 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 the same company/firm for further use in the manufacture of goods? For captive consumption in one's own factory, valuation would be done .....

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..... 14. How will valuation be done when inputs or capital goods, on which Cenvat credit has been taken, are removed as such from the factory, under the erstwhile sub-rule 1(C) of Rule 57AB of the Central Excise Rules, 1944, or under Rule 3(4) of the Cenvat Credit Rules, 2001 or 2002? Where inputs or capital goods, on which credit has been taken, are removed, as such on sale, there shou .....

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..... e available in the form of the transaction value of inputs sold to an unrelated buyer (if the sale price to the unrelated buyer varies over a period to the unrelated buyer varies over a period of time, the value nearest to the time of removal should be adopted). Problems will however, arise where the assessee does not sell goods to any independent buyer and the only removal of such input/capital .....

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..... f which Cenvat credit was taken by the assessee in the first place. In respect of capital goods, adequate depreciation may be given as per the rates fixed in Letter F.No. 495/16/93-Cus.-VI, dt. 26-5-93, issued on the Customs side. As such, we note that no sale is involved but only removal of inputs outside the factory. 4. In view of the discussion above, we waive the pre-deposit of duty .....

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