Valuation deductions for stock-transfer clearances were rejected where no legal basis existed and sale price was undisputed.

Deductions claimed from the value of goods cleared on stock-transfer basis were found inadmissible because no provision of law supported discounts or deductions for captively consumed goods. The appellant also admitted lapses in its reply to the show cause notice, and there was no dispute on the sale price available for valuation. On that factual basis, the claimed deductions from the sale price were rejected, and the demand and penalties in the impugned order were upheld.

---

---

Issues: Whether deductions claimed from the value of goods cleared on stock-transfer basis as captively consumed goods were admissible.

Analysis: The appellant admitted lapses in reply to the show cause notice, and there was no dispute regarding the sale price. No provision of law was shown to support the claim that the discounts or deductions claimed were available in respect of captively consumed goods. Since the sale price of the goods was available, the deductions claimed from that sale price were held to be not admissible.

Conclusion: The deductions were held inadmissible and the impugned order confirming demand and penalties was upheld.

---