2016 (1) TMI 765

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....edical gases which are liable to Central Excise duty. They are supplying specified quantity of gases on stock transfer basis to their unit at Faridabad. Revenue felt that the appellants are not discharging correct excise duty on such clearances to their Faridabad unit. Accordingly the proceedings were initiated resulting in confirmation of demand for differential duty and imposition of equal penalties. On appeal, learned Commissioner (Appeals) upheld the orders. Aggrieved by the same, the appellants are before us. 3. In the appeals, the appellant pleaded that when the value could not be determined under section 4(1)(a), the provisions of section 4 (1) (b) read with Valuation Rules will apply. They have sale to independent buyers and compar....

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....fferential duty. The lower authorities reproduced the provisions of section 4 (1) (a), section 4 (1) (b) and arrived at the conclusion that the value has to be fixed on comparable price of gases sold to independent buyers. Which of these independent prices is considered for valuation alongwith reason has not been elaborated. We find much force in the appellants' contention that while arriving at the comparable prices it is necessary to see whether the transaction for comparable value is in proximity of time to the similar or comparable class of buyers. The appellants are selling the gases to different set of buyers while comparing the price for valuation purposes, as already stated, it is necessary to have comparable volume and proximity of....