Excise valuation for tender clearances requires consistent application of the formula and proper scrutiny of extended limitation.

Valuation of excisable goods cleared against approved tenders was examined with reference to Rule 9 read with Rule 8 of the valuation rules, and the Tribunal stressed that the valuation formula, if applicable, must be applied consistently across all removals for the relevant period with adjustment of excess and short duty payments before any net demand is determined. It also noted that the Commissioner had not properly examined the assessee's charts showing clearances above and below the formula values, and that the available material did not justify an inference of deliberate evasion for invoking the extended limitation under the proviso to Section 11A(1). The order was set aside and the matter remanded for fresh determination, with all issues kept open.

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Issues: Whether the valuation of excisable goods cleared against approved tenders was to be determined under Rule 9 read with Rule 8 of the valuation rules, and whether the demand could be sustained by invoking the proviso to Section 11A(1).

Analysis: The Tribunal noted that the assessee had produced charts indicating that the clearances were at values both above and below the formulaic values, but the Commissioner had not examined this factual and legal plea. It also observed that, on the material then available, there was no basis to infer a deliberate attempt to evade duty, which would affect the applicability of the extended limitation. The Tribunal further indicated that if the valuation formula was applied, it had to be applied across all removals for the relevant period, with appropriate adjustment of excess and short duty payments before any overall demand could be determined.

Conclusion: The order was set aside and the matter was remanded for redetermination of the issues, with all questions kept open.

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