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TMI Blog2024 (8) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... ratio or not? HELD THAT:- This issue is no longer res integra as this Tribunal has decided the same issue in the case of M/S HINDUSTAN UNILEVER LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE SERVICE TAX, DIBRUGARH [ 2023 (10) TMI 991 - CESTAT KOLKATA] - in the decision cited, the methodology for arriving at the sale value from the audited financial statements of the company by apportioning the same to the respective units on the basis of stock transfer ratio has been accepted and special rate has been fixed accordingly. Therefore, by relying on the above decision, it is held that the impugned orders rejecting the special rate are legally not tenable and accordingly, the same is set aside. The impugned order set aside - appeal allowed. - H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 17/2008-CE dated 27.03.2008 and Notification No. 31/2008-CE dated 10.06.2008 ('Exemption Notifications'). 2. As the issue involved in both these appeals are the same, the same are taken up together for decision by a common order. 3. The facts of the case are that M/s. S.C. Johnson Products Private Limited, Unit-4, L-27, Bonda Industrial Estate, Village: Bonda, Narengi, Guwahati -781 026 (the Appellant ) are engaged in the manufacture of repellents for insects and cleaning preparations falling under Chapter 38 and Chapter 34 respectively of the First Schedule to the Central Excise Tariff Act. The rates of value addition of the products manufactured by the appellant, falling under Chapter 34 and Chapter 38, are 38% and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re summarized as under: - a) As per Explanation to paragraph 2.1 of the Exemption Notifications, actual value addition is computed on the basis of the financial records of the preceding financial year, by adopting the following formula: Sale value of the said goods excluding excise duty, Value Added Tax and other indirect taxes, if any, paid on the goods; Less: Cost of raw materials and packing material consumed in the said goods; Less: Cost of fuel consumed if eligible for input credit under CENVAT Credit Rules, 2004; Plus: Value of said goods available as inventory in the unit but not cleared, at the end of the financial year, Less: Value of said goods available as inventory in the unit but not cleared, at the end of the financial year pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant prayed for setting aside the impugned orders and allowing their appeals. 6. The Ld. Authorized Representative appearing for the Revenue reiterated the findings in the impugned orders. 7. Heard both sides and perused the appeal documents. 8. We observe that the appellant had applied for fixation of special rate for the Financial Year 2009-10 by adopting the methodology of arriving at the sale value on the basis of apportionment of the value of the company as a whole, since the goods were not sold from the manufacturing unit but from the depots of the company. We observe that the Commissioner of Central Excise and Service Tax, Guwahati, after verifying the documents submitted by the appellant, fixed the special rates for the Financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Average rate of sales realization of the Company and the average rate of VAT at the rate of 12.5% has been deducted from the gross value. Since different States have different rates of Sales Tax, it is not possible for the appellant to identify as to what quantity of which product, stock transferred to their Depot, is sold in which State, in order to claim the amount of Sales Tax against that particular clearance. In view of this, the appellant has adopted the formula for computation to arrive at the average Sales Tax, which is as under: .. 9. We find that for the purpose of calculation of actual value addition, as per the prescribed format, relevant figures from the audited Balance Sheet have been extracted, which has been enclosed along ..... X X X X Extracts X X X X X X X X Extracts X X X X
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