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TMI Blog2024 (6) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... ourts were consistently holding that the value adopted would be as per the Rule 4 of the Valuation Rules, 2000. In these cases, it was held that if even a fraction of supply was made to third independent parties, the value adopted has to be as per Rule 4 only. Subsequently, amendment was carried out on 22nd November 2013 to overcome these decisions. After this, for the clearances made to the sister unit, the value has to be arrived as per Rule 8 of the Valuation Rules, 2000. Revenue neutrality - HELD THAT:- Admittedly, the goods were cleared to their sister unit who were using the materials for further manufacturing process and paying the Excise Duty on the finished goods. Therefore, whatever Excise Duty was paid by the Appellant, the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved the Appellants filed their Appeal before the Tribunal. 2. This Tribunal vide Final Order No. A/455-457/KOL/2010 dated 29/07/2010 remanded the matter back to the Adjudicating Authority. He considered all the issues raised by the Appellant. Before the Denovo Adjudicating Authority, the Appellants submitted that about 90% of goods were being cleared to non-related 3rd parties and only 10% of the goods were being cleared on Stock Transfer Basis. They submitted invoice-wise details and price adopted by them for their Stock Transfer clearances vis- -vis, price adopted by them for clearances to 3rd parties. The Adjudicating Authority has confirmed the demand on the ground that the goods cleared to their sister unit does not match exactly wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the materials so received into finished goods and were paying Excise Duty on the finished goods. Therefore, he submits that the Appellant was not in a position to gain any additional benefit by showing any lower assessable value for clearances to their sister unit. He relies on the case law of Hindalco Industries Ltd. Vs. CCE, BBSR-II-2023 (5) TMI 720- CESTAT, Kolkata . Accordingly, he prays that the confirmed demands may be set aside on account of limitation also. 5. The Learned AR reiterates the findings of the lower authority and submits that the Adjudicating Authority while taking up the Denovo proceedings has gone into the invoices submitted by the Appellant. He has very clearly indicated at Para 3.7 of the Order that except for a fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir sister unit who were using the materials for further manufacturing process and paying the Excise Duty on the finished goods. Therefore, whatever Excise Duty was paid by the Appellant, the same would have been available to the sister unit as Cenvat Credit. In such a case, the Appellant would not be gaining any additional benefit by lowering the assessable value while clearing the goods to their sister unit. 10. Apart from this, the issue is also that of interpretation. The Tribunals and Courts were seized of the matter when the Department was confirming the duty under Rule 8 and the parties were claiming that the assessable value is to be arrived at as per Rule 4. In all these cases, the Tribunals and Courts have held that even if a fract ..... X X X X Extracts X X X X X X X X Extracts X X X X
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