2009 (11) TMI 887

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r>Dr. Chittaranjan Satapathy, Member (T) and Shri P.K. Das, Member (J) Shri K.S. Venkatagiri and S. Panchanathan, Advocates, for the Appellant. Shri V.V. Hariharan, Jt. CDR, for the Respondent. ORDER Heard both sides in respect of 15 appeals which involve a common issue. The appellants have been awarded turnkey project by Tamilnadu Water & Drainage Board (TWAD Board) for laying pipelin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er expenses. Both sides confirm that though these documents are used as a basis for submitting quotations by the appellants, no separate price is quoted by the appellants for the impugned pipes. The Department, under the impugned order, has discarded the assessable value calculated by the appellants applying CAS-4 and has adopted the price given in the tender invitation document by TWAD Board suit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....consumption can be followed as the situation, i.e., use of the pipes in a turnkey project by the buyer, was akin to captive consumption. 6. Shri V.V. Hariharan, the learned Jt. CDR cites the decision of the Hon'ble Supreme Court in the case of M.K. Kotecha v. CCE, Aurangabad - 2005 (179) E.L.T. 261 (S.C.) under which the method of comparable prices were ordered to be adopted as the basis o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pellants are using the pipes manufactured by them in the turnkey project undertaken by them and are maintaining these pipes for one year and the project cost covers both the cost of pipes as well as the cost of laying the pipeline and maintenance of the same, the valuation of the impugned pipes has to be done under Rule 11 adopting the cost construction method prescribed under Rule 8 of the Centra....