2008 (2) TMI 667

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...., SDR, for the Respondent. [Order per : P. Karthikeyan, Member (T)]. - M/s. Tel Exports, an EOU, has filed the captioned appeals. In the order impugned in Appeal No. E/53/2006, Commissioner (Appeals) sustained the demand of differential duty on parts of turbo charger supplied by the appellants to its sister concern M/s. Turbo Energy Limited during January, 1999 to September, 2000. In the ord....

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....thod of valuation adopted by the appellants was known to the department as far back as in April, 2001, Show Cause Notices issued on 30-1-2004 to pass the first order and 7-11-2005 to pass the second order were barred by limitation except for a period of one year prior to 7-11-2005. Ld. Counsel for the appellants has cited the judgment of the Apex Court in CCE, Vadodara v. Pioneer Scientific Glass ....

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....tive method in terms of Rule 7 of CVR. Ld. Counsel submits that by applying deductive method of Rule 7 the assessable value of the impugned goods worked out to an amount lower than the price on which the appellants paid the duty. Yet another argument advanced is that whatever duty the appellants paid, the same was instantly available as Cenvat credit to its sister unit. Therefore the proceedings e....

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....ential duty relating to clearances of impugned goods prior to November, 2004. Therefore we hold that the demand relating to the period prior to November, 2004 as barred by limitation. As regards clearances in the ensuing period, the demand is in time. We find that Rule 7 of CVR is applicable when the goods under assessment or identical/similar goods imported are sold in the country of importation.....