Valuation of inputs cleared as such upheld on invoice value basis under the Board's circular

Valuation of inputs cleared as such depended on whether duty should be worked out under Rule 8 of the Central Excise Valuation Rules or on the value reflected in the incoming invoices under the Board's circular relied on by the assessee. The appellate record showed that duty had been discharged on the circular-based method, and there was no stated reason to discard that approach. The Revenue's insistence on a different valuation basis under Rule 8 was not accepted, and the valuation adopted by the assessee was upheld. The Revenue's challenge failed and the order in favour of the assessee was sustained.

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Issues: Whether duty on inputs cleared as such by a manufacturer was required to be determined under Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, or on the value shown in the incoming invoices in terms of the Board's circular relied upon by the assessee.

Analysis: The dispute turned on the valuation method applicable to inputs removed as such. The assessee relied on the Board's circular, which the appellate authority had accepted, and the record showed that duty had been discharged accordingly. In the absence of any reason to disregard the circular, the Revenue's attempt to insist on a different valuation basis under Rule 8 was not accepted.

Conclusion: The Revenue's challenge failed, and the valuation adopted by the assessee was upheld.

Final Conclusion: The appeal was rejected and the order in favour of the assessee was sustained.

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