2012 (10) TMI 546

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....ion of the Tribunal. 2. After hearing both sides, we find that the appellants are engaged in the manufacture of machines which were being cleared by them to independent wholesale buyers as also to their sister unit. The assessable value adopted for the independent wholesale buyers and in respect of clearance to their sister units was the same. 3. The Revenue entertained a view that in respect of clearance to their sister unit, they are required to adopt the assessable value in terms of Rule 8 of Central Excise valuation Rules, 2000, which provide for adoption of assessable value of 110% of the goods. Accordingly, proceedings were initiated against them by way of show cause notice dated 19-11-2007 raising the demand of duty o....

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.... of the Commissioner (Appeals) upheld the same by observing that the appellants have failed to establish the fact of sales to independent wholesale buyers as held by the Assistant Commissioner, in which case the law declared by the Larger Bench in the case of Ispat Indus. Ltd. would not apply. He also rejected the appellants plea of limitation. Hence, the present appeal. 6. We find that the Larger Bench of the Tribunal in the case of Ispat Industries Ltd. referred supra has declared the law on the disputed issue to the effect that if there are sales to independent buyers as also to the sister units, value determined by assessee under Rule 4 is to be accepted. Rule 8 is applicable only when the entire production of a particular commo....