9911796707
TMI Blog2024 (2) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... rger Bench was whether the assessable value in respect of goods which are transferred to any plant/unit of the same assessee, is required to be determined as per Rule 4 or Rule 8 of Central Excise Valuation Rules 2000, in case where some goods were also sold to independent buyers. The Larger Bench have held in the circumstances and facts as follows:- In view of what we have observed above, we answer the reference in the following terms:- (a) the provisions of Rule 8 of the Valuation Rules will not apply in a case where some part of the production is cleared to independent buyers; (b) the provisions of Rule 4 are in any case to be preferred over the provisions of Rule 8 not only for the reason that they occur first in the sequential order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. 4. Rule 8 of the Valuation Rules requires that, where some goods are removed not by way of sale, but are used for consumption by the assessee or on his behalf in the production or manufacture of other articles, the value shall be determined at 110% / 115% of the cost of production. Whereas Rule 4 provides the value of the excisable goods shall be based on the value of such goods sold by the assessee for delivery at any other time nearest to the time of removal of goods under assessment . 5. The Larger Bench have held in the circumstances and facts as follows: 9. In view of what we have observed above, we answer the reference in the following terms: (a) the provisions of Rule 8 of the Valuation Rules will not apply in a ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the production or manufacture of other articles, the value of such goods that are consumed shall be one hundred and ten per cent of the cost of production or manufacture of such goods. 8. Learned AR also relies on the ruling of Division Bench of this Tribunal in CCE, Indore Vs Surya Roshni Ltd., [2016 (10) TMI 1137 CESTAT, New Delhi] wherein the assessee had both clearances to sister units and independent sales. So far independent sales are concerned duty was paid on the transaction valuation and so far sister unit is concerned the assessee had paid tax under Rule 8 being 110% / 115% of the cost of production. The case of Revenue was that the assessee should pay on the transaction value for the goods removed to sister concern, bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
