2007 (10) TMI 177

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....ondents clear all the water purifiers to EFL who in turn sell them to customers of on retail basis. The point that the issue is a valuation of spare parts which are as cleared to EFL who use them in repairs and maintenance of water purifiers for which Annual Maintenance Contract has been entered with the customers. The respondents cleared certain spares to EFL who sell them. In such cases the respondents pay duty on the basis of the sale value of EFL. However in respect of this spares cleared to EFL who use them in their maintenance contract with the customers, the value adopted for payment of duty is under Rule 8 of the Central Excise Valuation Rules, 2000. The original authority held that the respondents should pay duty even in such cases....

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....ed only for the Annual Maintenance. In such cases one should take recourse to Rule 11. Once recourse is taken to Rule 11 one has to go to Rule 8 which is the only rule where valuation is determined when there is no sale. Our attention was also invited to the clarification issued by CBEC in its Circular No. 643/34/2002-CX., dated 1-7-2002. Valuation Rules — Clarifications                                   Circular No. 643/34/2002-CX., dated 1-7-2002                      ....