2018 (12) TMI 423

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.... refinery. The appellant cleared the products to its own depots by payment of duty at the rate specified per kilo liter for volumes at ambient temperature. However, in respect of their sales to other oil marketing companies viz. HPCL as well as BPCL, they charged the same price per liter based on notional volume of the products by converting the volume at room temperature to the volume at 15°C. As a result, the volume of goods supplied got reduced and this resulted in lesser price than the price at which the goods were supplied by the appellant to its own depots. The department took the view that by adopting the above procedure, the appellant have undervalued their products cleared to HPCL and BPCL. Accordingly, show cause notice was is....

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....stified the impugned order. 6. The dispute in the present case concerns the value adopted for payment of duty in respect of two petroleum products viz. Motor Spirit and High Speed Diesel. The appellant paid duty on the quantity of goods cleared and sold through their own depots, on the basis of the price per kilo liter for volume at ambient temperature. However, in respect of clearances made to HPCL and BPL, the volume of goods cleared were shown at 15°C and duty was paid on such quantity of goods cleared. Since the volume of goods at 15°C will be lesser than the volume of the same products at ambient temperature, the department proceeded by taking the view that the appellant has short paid the duty. This view has been challenged....

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....e of the removal, the assessee and the buyer of 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 him for the goods sold and the money value of the additional consideration, if any, flowing directly or indirectly from the buyer to the assessee in connection with the sale of such goods, and such price-cum-duty, excluding sales tax and other taxes, if any, actually paid, shall b....