2018 (5) TMI 480

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....rmina.ls from where they are either sold as such or are being sold after addition of 'octane 1 boosters' (Multi Functional Fuel Additives (MFFA) under the brand name 'Speed'. The appellants are discharging excise duty under Rule 7 of Central Excise Valuation Rules, 2000, according to which irrespective whether the plain MS/HSD sold from their terminal/ depot or as Speed MS/HSD, they are applying the sale price of plain HSD and MS nearest to the time of removal of goods from the factory. The case of the Department is that in case of Speed MS/HSD, the sale price of Speed MS/HSD at which the goods are sold from their depot should be applied. Accordingly, there is under-valuation of the goods namely, Speed MS/HSD. 2. Shri Gaj....

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....is clearly applicable for the reason that the sale price of Speed MS/HSD is in respect of very same goods, which are cleared from the factory as plain MS/HSD. Therefore, the appellant applied the less assessable value, which is contrary to Rule 7 of Central Excise Valuation Rules, 2000. In support of the submissions, he placed reliance on the following Notification/ Circular and judgments: - (a) Notification No. 47/2001-CE (NT) dated 266.2001. (b) Notification No. 17/2004-CE (NT) dated 04.9.2004 (c) Circular No. 793/26/2004-CX dated 02.06.2004 (d) Siddhartha Tubes Ltd. - 2006 (193) ELT 6 (SC) (e) Clarient (I) Ltd. Vs. Commissioner of Central Excise, Thane-I - 2006 (916) ELT 353 (Tri-Mum) 5. On....

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....the same time and where such goods are not sold at or above the same value, at the time nearest to the time of removal of the goods under assessment. In the present case, the goods cleared from the factory is plain MS/HSD but the same goods are sold from the depot as Speed MS/HSD. Therefore, all the goods which are cleared as plain MS/HSD, which was subsequently sold as Speed MS/HSD, the sale price of such plain MS/HSD shall apply. The contention of the appellant that such goods means the plain MS/HSD, hence in any case, sale price of Speed MS/HSD shall not apply is clearly in conformation to interpretation of Rule 7 for the reason that it is admitted fact that the goods cleared as plain MS/HSD are sold from depot as Speed MS/HSD. Therefore....