2018 (2) TMI 416

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....rior Kerosene Oil (SKO) (PDS) and Liquid Petroleum Gas (LPG) (Domestic). The appellant adopted the price at which these products were sold by the marketing companies for payment of duty. This price was subsidized by the Government. On the other hand they charge an amount, which they raised at later stage, equivalent to Refinery Gate Price from the Oil Marketing Company, as the price of these goods. The Refinery Gate Price is much higher than the Ex-Storage Selling Price fixed for the products. Hence Revenue was of the view that the appellant had paid duty on subsidized price instead of paying duty on the Refinery Gate Price. This led to the proceedings resulting in the differential duty being confirmed against the appellant. Aggrieved by th....

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....is Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall - (a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value.  .... .... . (b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed. [Explanation. - For the removal of doubts, it is hereby declared that the price-cum-duty of the excisable goods sold by the assessee shall be the price actually paid to h....

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....ction value , when BPCL is related to the appellant as KRL is said to be the subsidiary company of the BPCL (Bharat Petroleum Company Ltd.). 10.1.3. It is to be noted that the price being paid by the Oil Marketing Companies (other than BPCL) includes the terminal charges also. Therefore, for the purpose of Central Excise duty, the assessable value which is now called the transaction value [after the amendment made in Section 4 of the Central Excise Act, 1944 by the Finance Act (with effect from 1.7.2000)] is the price that is charged by the KRL from OMCs for the subject goods. 10.2. The appellant s argument that the subsidized price should be taken as transaction value for charging Central Excise duty on the goods sold by ....