https://www.taxtmi.com/caselaws?id=53039 Depot sales require valuation to be tested first under the normal-price mechanism in section 4(1)(a), because the depot is a place of removal. The residual valuation method under section 4(1)(b) read with Rule 7 cannot be used without exhausting that primary mechanism. Undervaluation requires proof that additional consideration actually flowed back from buyers to manufacturers. Bank statements supplied for credit facilities, alleged fictitious buyers, and non-account-payee payment allegations do not establish undervaluation without reliable evidence of payment exceeding invoice value. On these principles, duty, interest, and penalty demands based on the adopted valuation method and evidence were unsustainable. en-us Wed, 23 Jun 2004 00:00:00 +0530 Sat, 09 Oct 2010 12:06:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=53039 Depot sales require valuation to be tested first under the normal-price mechanism in section 4(1)(a), because the depot is a place of removal. The residual valuation method under section 4(1)(b) read with Rule 7 cannot be used without exhausting that primary mechanism. Undervaluation requires proof that additional consideration actually flowed back from buyers to manufacturers. Bank statements supplied for credit facilities, alleged fictitious buyers, and non-account-payee payment allegations do not establish undervaluation without reliable evidence of payment exceeding invoice value. On these principles, duty, interest, and penalty demands based on the adopted valuation method and evidence were unsustainable. Case-Laws Central Excise Wed, 23 Jun 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=53039