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TMI Blog2005 (7) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... ds cleared for export vide ARE-1 mentioned in para 2 of the Order-in-Original, No. 380/2004-Dr-II, dated 22-6-2004. The rebate was sanctioned. 2.2. During the course of scrutiny of Bank realization certificate, it was noticed that, the respondents had realized lesser amount i.e., sale proceeds as compared to the value shown in ARE-1 on the basis of submission of BRCs by the Assessee). The actual realization of sale proceeds being at lower side than that of the value shown on ARE-1 the assessee appeared to have realized excise duty at higher side by way of rebate. The different value comes to Rs. 17,04,286/- which involved total duty of Rs. 2,35,192/- (BED Rs. 2,04,514/- @ 12%+ AED Rs. 30,678/- @ 15% on BED) and as such the rebate of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arily to be the same. The AR4 value is for domestic sales whereas the value declared on the shipping bill u/s 40 of the Customs Act, is the transaction value in the course of international trade. The FOB value so declared could be more or less than the AR-4 value depending upon the bargain power of the exporter/manufacturer. In case the adjudicating authority was apprehensive of the correct declaration of AR-1 value, the proper course was to have followed Central Excise Valuation Rules, 2003. That FOB value could be more or less than AR4 value is already clarified by CBEC Circular mentioned above. If bank realization certificates shows lesser amount then the FOB value declared, it is for the Customs of RBI to take necessary action in the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... short by Rs. 17,04,286/-. (c) That the Central Board of Excise & Customs, New Delhi vide Circular No. 203/37/96-CX., dated 26-4-1996, has examined the similar issue and has clarified that AR-4 (now ARE-1) value should be determined under Section 4 of the Central Excise Act, 1944 and the same should be declared on the invoices and this value is relevant for the purpose of Rules 12 and 13 of the erstwhile Central Excise Rules, 1944. Now Rule 18 has been introduced in new Central Excise Rules, 2002 in place of old Rule 12 & 13 of erstwhile Central Excise Rules, 1944. It is now settled issue that the 'Board's instruction (sic) on the departmental officers. In view of the above the applicant Commissioner requested to set aside the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 7. Sh. R.K. Sharma, ld., Counsel, appeared for personal hearing on 26-5-2005, on behalf of the respondents and made written submissions. He has also reiterated contents of the letter mentioned in para 6 above. 8.1. Govt. has carefully gone through the written and oral submissions. Govt., has also gone through the Order-in-Original, and the impugned Order-in-Appeal. The only question is to be decided in the instant Revision Application is that what should be value of the impugned goods for the purpose of payment of Central Excise duty on the impugned goods? For the purpose of valuation of the excisable goods relevant section is Section 4(1) of the Central Excise Act, 1944, which is extracted below :- Section 4 (valuation) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no tariff value fixed for it under Section 3(2), it has been to be assessed according to its transaction value determined under Section 4 as substituted with effect from 1-7-2000. 8.4. In the instant case it is not the case of Revenue that the seller and buyer of the goods are related person. Govt., therefore, would agree with the contention of the applicant Commissioner that the excise duty on the goods should have been paid on transaction value as defined under Section 4(3)(d) of the Central Excise Act, 1944. CBEC vide their Circular No. 203/37/96-CX., dt. 26-4-96 have also clarified that AR 4 value should be determined under section 4 of the Central Excise Act, which is required to be mentioned on the invoices issued under Rule 52 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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