TaxTMI 
TaxTMI 
2018 (11) TMI 1202
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....ompany Ltd. are inter alia engaged in manufacture of lignite from its mines located at Kapurdi in Barmer District of Rajasthan State and are supplying the entire lignite mined by them only to Rajasthan West Power Limited (RWPL) for power generation. The appellant has been assessing the cost of lignite extraction on the basis of extrapolation of lowest bid submitted against the Rajasthan State Mines and Minerals Ltd. (RSMML) tender for its Sonari Mines with due adjustments for stripping ratio, mine depth and other parameters as that of Kapurdi. The price was subject to approval of Rajasthan Electricity Regulatory Commission (RERC). During an internal audit, the Department alleged that the appellant has short paid the Central Excise duty amou....
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....sional assessment of lignite supplied to M/s RWPL under Rule 7 of Central Excise Rules, 2002. But instead of acknowledging the provisional assessment, Department insisted not only for furnishing the bank guarantee but had also entertained a view that appellants have under valued the lignite supplied to RWPL on the ground that the appellants bid price/ petitioned price should be the final price and not the interim price. It is submitted that the documents as that of the provisional price assessment Orders of RERC have totally been ignored and are denied to be treated as transaction value by the Adjudicating Authority below, same is alleged to be an erroneous finding. Order is accordingly prayed to be set aside. 5. Ld. Counsel has relied u....
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....ation being sent to the Department about appellant being a joint venture company between RSMML and RWPL with 51% and 49% shareholding respectively. Also that there has been an Implementation Agreement entered between Government of Rajasthan and RWPL for the entire power generated by RWPL to be procured by three Rajasthan Distribution Companies, i.e. Jaipur, Jodhpur and Ajmer. The lignite for the purpose was to be provided by the appellant. As per the provisions of said Implementation Agreement, the transfer price of lignite from appellant to RWPL for power generation was to be decided by RERC on yearly basis, based where on supply of lignite was to be invoiced though appellant had to mention a petitioned price at the time of bidding. The pe....
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.... prayed by the appellant. 9. For adjudication, we have looked into RERC Tariff Regulations, 2009 as annexed on the Appeal record. Perusal thereof shows that the Commission as constituted under the Electricity Act, 2003 shall determine the tariff of a generating company under a multi-year tariff framework for each financial year in furtherance of the petition alongwith the requested documents as mentioned therein by the generating company. The Rule permits the generating company for filing for provisional determination of transfer price at mine-mouth before taking up mining. Such provisional determination is mentioned to be the guiding factor for determination of final transfer price which has to be determined after a lengthy and time-tak....
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....able on such goods. Perusal thereof makes it abundantly clear that transaction value is the price actually paid or payable for the goods. The price actually paid in the present case is adhoc/ interim price and the price payable would be the price as would be finally fixed by RERC. Thus, we are of the opinion that Ld. Commissioner Adjudication has gone wrong while still considering the petitioned price to be the transaction value for the lignite supplied by the appellant. Otherwise also, since the price could only be fixed by RERC, an appointed authority under Electricity Act, 2003, once petitioned price has not been approved by this authority, the appellant has no right to recover the same from RWPL. For this reason also, the petitioned ....