TaxTMI 
TaxTMI 
2005 (9) TMI 340
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.... been referred to the Larger Bench. 2. The appellants availed the Cenvat credit on the inputs purchased by them for use in their final products. They removed the inputs by reversing the credit availed on such inputs when removed from their factory. 3. The contention of the appellants is that they are engaged in the manufacture of IC engines and they purchase the duty paid inputs for use in their final products and avail credit of the duty paid on such inputs as provided under the Cenvat Credit Rules, and at times remove such duty paid inputs from the factory to their marketing division by reversing the credit taken on such inputs. The Revenue objected the reversal of the credit on such inputs on the ground that as per Rule 3(4) of the....
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....inputs or capital goods are removed as such to a sister unit of the assessee or to another factory of the same company and where no sale is involved. It may be noticed that sub-rule (1C) of Rule 57AB of the erstwhile Central Excise Rules, 1944 and Rule 3(4) of the Cenvat Credit Rules, 2001 (now 2002), talk of determination of value for "such goods" and not "said goods". Thus, if the assessee partly sells the inputs to independent buyers and partly transfers to its sister units, the transaction value of "such goods" would be available in the form of the transaction value of inputs sold to an unrelated buyer (if the sale price to the unrelated buyer varies over a period of time, the value nearest to the time of removal should be adopted). ....
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....g certain points relating to the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. 2. A number of references seeking further clarification on some of the points clarified in the Circular mentioned in Para 1 above have been received in the Board. These points are being clarified in the table enclosed. These clarifications supersede the clarification given in above referred circular. 3. Trade Notices may be issued for the benefit of the Trade. 4. Hindi version will follow. 5. Receipt of this circular may kindly be acknowledged. Sl. No. Old Sl. No. Point of Doubt Clarification 1. 13. How will valuation of samples be done which are distributed free, a....
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....it Rules, 2004 shall apply to situations when the provisions of sub-rule (1C) of Rule 57AB of Central Excise Rules, 1944, or Rule 3(4) of Cenvat Credit Rules, 2001 or Rule 3(4) of Cenvat Credit Rules, 2002 were in force. 3. The matter has been examined. As per sub-rule (1C) of Rule 57AB of Central Excise Rules, 1944, or Rule 3(4) of Cenvat Credit Rules, 2001 or Rule 3(4) of Cenvat Credit Rules, 2002 up to 28-2-2003, in case a manufacturer removes inputs or capital goods as such, he was required to pay an amount equal to the duty of excise leviable on such goods at the rate applicable on the date of such removal and on the value determined under Section 4 or Section 4A, as the case may be. As per Notification No. 13/2003-C.E. (N.T.)....