2008 (9) TMI 832

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....hri S.N. Srivastava, DR, for the Respondent. [Order per : Rakesh Kumar Member (T)]. - The appellant, a public sector enterprises, manufacture; among other items, Methanol in their factory at Naya Nangal, District Ropar, Punjab, while the bulk of the Methanol is cleared for captive consumption for use in the manufacture of fertilizer, the production of Methanol, which is in excess of their re....

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....iod from 1-9-02 to 31-12-02. The Assistant Commissioner, vide order-in-original dated 26-2-04 confirmed the duty demand of Rs. 25,531/- along with interest and beside this, imposed equal penalty on the appellant under Section 11AC of the Central Excise Act, 1944. The Commissioner of Central Excise (Appeals) vide order-in-appeal No. 437/CE/Appeal/Ldh/2004 dated 28-6-04, upheld the Assistant Commiss....

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.... sale price of Methanol to their Bhatinda and Panipat units and Rule 8 readwith Rule 10 of the Valuation Rules cannot be invoked; (b)     Methanol was being sold to Bhatinda and Panipat units without any discount while sale was being made to other buyers at a discount and, thus, no favour was shown to Bhatinda and Panipat units; and (c)     Tribunal in....

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....ue determined by taking 115% of the cost of production. 3. We have carefully considered the submissions from both the sides. Even if the Panipat and Bhatinda units of the appellant are treated as "related persons" (inter-connected undertaking), Rule 10 read with Rule 8 cannot be invoked as these are substantial sales to independent buyers and Tribunal in case of CCE, Pune v. Arofine Polyme....