TaxTMI 
TaxTMI 
2018 (10) TMI 817
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....iers for their captive use for transportation of the cars, which are not sold by them. The appellant have paid Central Excise duty on such car carriers as per the provisions of Rule 8 of Central Excise Valuation Rules, 2004 on the basis of value provided by Cost Accountant as per the requirement of CAS 4 certificate. The Revenue has undertaken Audit of the appellant's manufacturing premise for the period covering April 2008 to November, 2010. The Revenue has entertained a doubt with regard to the valuation adopted by the appellant for payment of Central Excise duty. It has been contended by the Revenue that the cost of manufactured car carriers given by the Cost Accountant in their CAS 4 certificate is less than the value adopted by the Rev....
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.... notified @ 114.70% of the cost for the year 2007-08. The basic premise of demand of Rs. 19,27,842/- was worked out by the Revenue keeping in mind the Cost Inflation Index. 4. Accordingly, the assessable value of per car carrier body was worked out and appropriate Central Excise duty was demanded by the Revenue, as given below:- Year 2008-09 S. No. Base Year Assessable value per car carrier body Inflation rate (5.63%) Inflated assessable value per car carrier body No.of car carrier bodies cleared Total assessable value 1 2007-08 15,00,000 84,450 15,84,450 10 1,58,44,500 Year 2009-10 S. No. Base Year Assessable value per car carrier body Inflation rate (14.70%) Inflated ....
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....of the assessee that the valuation of the car carrier bodies adopted by them is as per the legal provisions of Central Excise Act read with Central Excise valuation Rules. It has been the argued by the learned advocate appearing for the appellant that all 25 car carrier bodies manufactured by them have been captively used by them for their own purpose and as per the provisions of section 4 of Central excise Act, 1944, it is very categorically provided that where there is a no sale in the normal course of business, the provisions of Central Excise Valuation Rules, 2000 need to be applied. It has further been added that the Central Excise Valuation Rule 8 specifically covers the situation where the manufactured goods are cleared for captive c....
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....tion and accordingly, the penalty under section 11AC is also not imposable on them. 7. We have also heard learned DR who has reiterated the findings as mentioned in the learned Commissioner (Appeals)' order. 8. We have heard both the sides . The basic issue before us is to determine as to whether the assessable value arrived by the appellant assessee for payment of Central Excise duty, on the car carrier body build by them, as per the provisions of Rule 8 of Central Excise Rules, 2000 read with section 4 of Central Excise Act, 1944 is correct as per provisions of law or not and secondly; whether the demand of duty is hit by bar of limitation. 9. It is seen that section 4(1)a of the Central Excise Act provides that assessable value ....
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....that Rule 8 specifically covers a situation like the one before us except that it is not used for further manufacture of excisable goods. We believe that for determining the assessable value under the present situation under Rule 8 of Central Excise Valuation Rules, 2000 is the closest and more appropriate because the basic requirement of Rule 8 of Central Excise Valuation Rules, 2008 that (a) that the goods are not sold and (b) the goods are used for consumption by appellant assessee, are satisfied. We are of the view that since the goods are being used by the appellant assessee himself, it is not necessary that same need to be used only for the production and manufacture of other articles. Now coming to the fact that valuation of captivel....