2004 (11) TMI 450

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....ng is effected and when such goods are used in and as pesticide eradication/Control Service Contracts are entered into with various customs? 2. Assessee manufactures and clears Pesticides/Insecticides packed in Retail packs to wholesale dealers for onward Retail sales. Certain such products, in bulk packs, are removed to Service Division for use and consumption in services rendered for 'Pest Control' under contracts entered into with household/industrials/commercial premises owners/users. In respect of such "Bulk Removal's" the assessee has discharged duty on an assessable value arrived at under Cost Construction Rule based on Chartered Accountants certificates. (b)     Without questioning the Chartered Accoun....

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....oard vide its Circular 643/34/2002, dated 1-7-2002 has clarified that - "Valuation of goods in cases of goods transferred to a sister unit or another unit of the same company will be done as per Rule 9 (proviso) however, such goods shall be consumed/used in the production or manufacture of goods. As the goods are not used/consumed further for the production/manufacture of goods neither Rule 9 nor Rule 8 of Central Excise (Valuation) Rules, 2000 is applicable." In such a situation recourse can only be made to Rule 11 of Central Excise (Valuation) Rules, 2000 which states that - "If the value of goods cannot be determined under the forgoing rules, the value shall be determined using reasonable means consistent with the principles of ....

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....d differ depending upon the cost of packing. For comparison purposes of Rule 4 of the Central Excise (Valuation) Rules, 1975, material in such different packings cannot be comparable or 'SUCH GOODS'. Therefore, valuation has to be arrived at under Rule 6(b) (ii). Since the removals 'Service Centre' are for use and consumption on the assessees behalf, pursuant to the Service Contracts. Even in this case, for the same reasons the principles of Rule 6(b)(ii) would have to be applied. This would be so even under the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 Rule 8 which take places of earlier Rule 6(b)(ii) of 1975 rules. This new rule does not relate to comparable goods but mandates that value should be on....