TaxTMI 
TaxTMI 
2017 (11) TMI 1385
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....ndore). The period of dispute is March 2011 to November, 2013. 2. In all the appeals, the issue is identical pertaining to valuation of clinker manufactured and stock transferred to the sister unit of the appellant. The core issue is whether valuation will have to be determined under Rule 8 or Rule 4 of the Central Excise Valuation (Determination of the Price of Excisable Goods) Rules, 2000. When the issue is common then we decide all the appeals together for the sake of convenience. 3. The facts in narrow compass are that the appellant is engaged in the manufacture of cement of various grades which attracts the excise duty as per the Central Excise Tariff Act, 1985. The clinker is an intermediate product which is used for manufacture of ....
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.... CCE, Bhavnagar- 2013 (295) ELT 470 (Tri.) which was passed in view of the ratio laid down by the Larger Bench of the Tribunal in the case of Ispat Industries Ltd. vs. CCE, Raigad -2007 (209) ELT 185 (Tri.Del.) where it is stated that when the goods partly transferred to the sister unit then the transaction value will apply as per Rule 4. Ld. AR also relied on the decision of the Tribunal in the case of Balajee Electro Steel Ltd. vs CCE, Ranchi -2007 (219) ELT 563 (Tri. Kolkata) where the valuation was determined for the captive consumption of the 10% for further manufacturing and 90% goods were sold to the independent buyer. Finally, Rule 4 was made applicable in that case. 7. By considering the rival submissions and on perusal of record,....
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....e 'final product' from factory to their sister concern and not for sale therefrom. The reason for price difference in case of parts of the final product as explained by the party is that in case of transfer of components, they are not including selling expenses, marketing expenses, distribution expenses etc. which are the main ingredients of price in case components/ parts are sold to independent buyer. The case laws referred to in the Audit para appears not to be squarely applicable in this case as i the case of Ispat Industries Ltd. the issue of valuation decided by the Hon'ble Apex Court relates to value at the time of import of the goods and not of clearance of indigenously manufactured goods. Similarly, Larger Bench of the CESTAT in th....