2017 (11) TMI 605

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....)(c) of the Central Excise Rules, 1944 and Rule 3(4) of Cenvat Credit Rules, 2001/2002. 2. Shri. N.N. Prabhudesai, Ld. Suprintendent(A.R.) appearing on behalf of the Revenue reiterating the ground of appeal submits that as per the provision of Rule 57 AB (1)(c) of Central Excise Rules, 1944 there is unambiguous provision in case of removal of input as such, duty should be discharged by valuing the goods under Section 4 therefore whatever value is charged on account of supply of goods as such on which Cenvat credit was availed duty has to be paid on transaction value. He placed reliance on the following judgments: (a) Viswaat Chemicals limited Vs. Commissioner of C. ex. Mumbai-VII[2003(159)ELT 807(Tri.Mum)] (b) BPL Ltd V....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Hon'ble Apex Court in case of Ispat Metallics Industreis ltd(supra) wherein Hon'ble Court as passed following order: "9. Having heard the learned counsel for the parties, it is important to first set out the relevant rules. Rule 57AB(1C) of the Central Excise Rules, 1944 and Rule 3(4) of the Cenvat Credit Rules, 2001 as they read at the relevant time, read as follows :- "57(1C) When inputs or capital goods, on which credit has been taken, are removed as such from the factory, the manufacturer of the final products shall pay an amount equal to the duty of excise which is leviable on such goods at the rate applicable to such goods on the date of such removal and on the value determined for such goods under Section 4 of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as been taken, are removed as such on sale, there should be no problem in ascertaining the Transaction value by application of Sec. 4(1)(a) or the Valuation Rules. [Provided tariff values have not been fixed for the inputs or they are not assessed under Section 4A on the basis of MRP] There may be cases where the inputs or capital goods are removed as such to a sister unit of the assessee or to another factory of the same company and where no sale is involved. It may be noticed that sub rule (1C) of Rule 57AB of the erstwhile Central Excise Rules, 1944 and Rule 3(4) of the Cenvat Credit Rules 2001 (now 2002, talk of determination of value for such goods and not the said goods. Thus, if the assessee partly sells the inputs to independent ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....   • 11. A reading of this circular makes it clear that a distinction is made between inputs on which credit has been taken which are removed on sale, and those which are removed on transfer. If removed on sale, "transaction value" on the application of Section 4(1)(a) of the valuation rules is to be looked at. However, where the goods are entirely transferred to a sister unit, it is reasonable to adopt the value shown in the invoice on the basis of which Cenvat Credit was taken by the assessee i.e. the invoice of the supplier of the pellets to the assessee. 12. As it is clear that the present is a case of transfer and not sale of pellets, no infirmity can be found with the Tribunal's judgment, which o....