Comparable goods valuation supports refund where scrap has no direct sale price and excess excise duty was paid.

Where scrap generated at a job worker's premises was not sold and no direct sale price was available, the value could be determined under the Central Excise Valuation Rules, 1975 by reference to comparable goods. The assessee relied on purchase invoices of scrap to support the adopted market comparison, and the Revenue produced no contrary evidence to justify a different valuation. The comparable price was accepted, resulting in excess excise duty being treated as refundable, subject to verification.

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Issues: Whether the value of scrap generated at the job worker's premises, not sold by the assessee, could be determined on the basis of the price of comparable scrap goods and whether the excess excise duty paid thereon was refundable.

Analysis: The assessee had not sold the scrap, so no actual sale price was available. The Tribunal held that recourse had to be taken to the Central Excise Valuation Rules, 1975, and that Rule 7 permitted adoption of the normal transaction value by reference to comparable goods where direct sale value was unavailable. The assessee relied on purchase invoices of scrap to show comparable market price, and the Revenue produced no material to dislodge that valuation or establish any better comparable price. The earlier remand had also directed determination of the correct value of the scrap on the basis of evidence to be placed by the assessee.

Conclusion: The comparable price adopted by the assessee was accepted, the duty had been paid in excess, and the refund was held admissible, subject to verification.

Ratio Decidendi: Where excisable goods are not sold and no direct sale value is available, their value may be determined on the basis of comparable goods under the valuation rules, and such valuation cannot be rejected in the absence of contrary evidence.

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