TaxTMI 
TaxTMI 
2011 (8) TMI 828
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....ties by the impugned orders. M/s. MITC Rolling Mills (Pv) Ltd. have filed the appeal for denial of Cenvat credit of duty paid by M/s. New Bombay Ispat Udyog (P)Ltd. 2. The brief facts of the case are that M/s. New Bombay Ispat Udyog Pvt.Ltd. is the manufacturer of M.S. Ingots & Billets and availing Cenvat Credit on the inputs. They after manufacturing the final product viz. M.S. Ingots cleared the same on payment of duty to independent buyers as well as to their sister concern M/s. MITC Rolling Mills Pvt Ltd. The department was of the view that the clearance made by the appellants to their sister concern i.e. M/s, MITC Rolling Mills Pvt. Ltd. should have been as per Rule 9 read with Rule 8 of the....
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.... 185 (Tri-LB). He, therefore, submitted that the impugned orders are to be set aside. 4. On the other hand, Shri V.K.Agarwal, the ld.SDR appearing on behalf of the Revenue, submitted that the Board has clarified through Circular No. 643/34/2002 C.E. dated 1.7.2002 how to arrive at the assessable value for clearance made to sister unit for captive consumption. As per that circular, the goods cleared to sister unit for captive consumption the assessable value to be arrived at 115% of the cost of production of the goods. Therefore, the adjudicating authority has relied on the Board's circular and passed the impugned orders which is the correct method of valuation for captively consumed goods. He further submitted that the Director of t....
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.............. 36. In our opinion, the Gunapradhan principle is fully applicable to the interpretation of Rule 9(2). Rule 9(2) is subservient to Section 14. We must, therefore, interpret it in such a way as to make it in accordance with the main object that is contained in Section 14 of the Customs Act. It may be that in isolation Rule 9(2) conveys some other meaning, but when it is read along with Section 14 of the Act, it must be given a meaning which is in accordance with the object of Section 14. The object of Section 14 is 'primary' whereas the conditions in Rule 9 (2) are the 'accessories'. The 'accessory' must, therefore, serve the 'primary'." 9. In view of what we have observed above, we answer the reference in the following terms : ....