2016 (1) TMI 970

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.... Authority of India Limited and Revenue against two orders passed by Commissioner (Adjudication)  Raipur dated 30/1/2006 and 31/1/2006. The assessees are engaged in the manufacture of various iron and steel products liable to Central Excise Duty. The dispute arose regarding valuation of finished goods like plates, angles, channels, etc which were captively consumed in the project work by the assessee and also finished goods transferred by the assessee to Selam Steel Plant for use in further manufacture. In respect of the goods which are captively consumed by the assessee in the project work they have paid duty on the basis of market price of similar goods at the relevant time. In respect of the stock transfer of finished goods to Selam....

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....oduction or manufacture of any excisable goods. They have used in civil construction within or outside the factory. As such the ld. Counsel submitted the provisions of Rule 8 will not apply in such situations. He further submitted that the original authority has fallen in error in interpreting the meaning of Rule 8. Assessee paid duty on these items used by them for civil work, taking the value of goods sold at the factory gate to independent buyers. 3. Ld. Counsel for the assessee submitted that in respect of the clearances made to other units like Selam Steel Plant the clearances are not on sale basis. These units are part of the same company. Hence, there is no question of interconnected or related party in the present case. The entir....

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....me clearly indicates that where the excisable goods are not sold by the assessee but are used by him or on his behalf in the production or manufacture of other articles, the value shall be 115% of the cost of production or manufacture of such goods. We find here the assesses are using only part of their production captively for project work. There are proper sale of these items to unrelated persons fulfilling the condition of transaction value for the purpose of Central Excise duty. The new Rule 8 introduced w.e.f. 1/12/2013 clearly makes departure to the effect that even where part of the excisable goods are not sold the value should be on the cost basis. The provisions of Rule 8 as prevailing during the relevant time have no application i....