TaxTMI 
TaxTMI 
Dear Member Can any body tell me whether the decision in case of M/s Ispat Industries ltd. Vrs. CCE, Raigad 2007(209) ELT 185 (Tri-LB) has been overruled by any court? In this case the tribunal held that when there is stock transfer for captive consumption as well as sell to independent buyer, Rule 8 of valuation rule will not be applicable for stock transfer case and goods will be valued under sectin 4(1)(a) i.e. transaction value. Thank You
valuation on stock transfer Rule 8 of valuation rule
17 Oct 2012 
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Stock transfer valuation: apply transaction value when goods are partly sold to independent buyers, not presumptive cost-based valuation.
When identical goods are partly sold to independent buyers and partly stock-transferred for captive use, valuation for the transferred portion should follow the transaction value principle rather than a presumptive cost-based rule, because sales to independent buyers establish the market transaction value that governs valuation; cost-based valuation applies only where transfers are exclusively to related units. (AI Summary)
When identical goods are partly sold to independent buyers and partly stock-transferred for captive use, valuation for the transferred portion should follow the transaction value principle rather than a presumptive cost-based rule, because sales to independent buyers establish the market transaction value that governs valuation; cost-based valuation applies only where transfers are exclusively to related units. (AI Summary)