2017 (3) TMI 1085

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....ether for disposal. 2. Appeal No.E/1060 of 2011 -EX is by the assesee/appellant (Raipur Unit) against the confirmation of differential central excise duty of Rs. 1,37,87,407/-. The Revenue filed appeal No.1603/2011 against the same impugned order aggrieved by non-imposition of penalty by the Original Authority. 3. Appeal No.E/56238/2013-EX is by Raigarh Unit of the appellant /assessee against denial of cenvat credit on this differential duty, for which they have received supplementary invoices. 4. The brief facts of the case are that M/s. Jindal Steel and Power Ltd. are having two manufacturing units - one at Raipur and another at Raigarh. Raipur Unit is engaged in the manufacture of various machinery items and have been clearing t....

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.... time, the appellant/assessee, Raipur Unit correctly followed the assessable value of similar goods sold to independent buyers. There is no dispute on the fact that there are sales to independent buyers and the goods are similar. The Revenue‟s contention that the transfer to Raigarh Unit should be treated as sale to related party is without any factual basis. He further relied on the certain case laws, which are referred to later in this order. 6. Regarding the denial of credit to Raigarh Unit, ld. Counsel submitted that Original Authority fell in error by relying on the provisions to Rule 9(1)(b) of Cenvat Credit Rules, 2004, which have no application to the facts of the present case. The differential duty was confirmed by the jur....

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..... In Steel Authority of India Ltd. - 2016 (335) ELT 94 (Tribunal-Delhi), Ispat Industries Ltd. - 2007 (209) ELT 185 (Tribunal-Lb), the Tribunal held that if there are independent sales of similar items, then the provisions of Rule 8 of Valuation Rules, 2000 will not apply. The observation of the Tribunal in Steel Authority of India Ltd. is as under:- "6. 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 shou....

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....ransaction value for excisable goods cleared on transfer to appellant‟s own unit in Raigarh. We note that the findings of the Original Authority to the effect that Raipur Unit and Raigarh Unit of the appellant /assessee are related parties is fallacious and without any basis. Both are owned by single legal entity and as such, they cannot be two persons related to each other. Reference to Accounting Standard for annual balance sheet and term of "Associated Enterprises", made by the Original Authority is not relevant to the facts of the present case. Accordingly, following the decisions on similar facts already arrived at by the Tribunal, we find that the appellant/assessee is right in adopting value of independent sales to the goods cl....