TaxTMI 
TaxTMI 
2022 (3) TMI 359
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....f the sales ledger, it was observed that the appellants had purchased capital goods valued at Rs. 26,72,414/- vide invoice dated 24.03.2004. The said capital goods were cleared by them on declaring the value of Rs. 6,14,322/- vide invoice dated 27.04.2017 to its another unit i.e. M/s Hindustan Coca Cola Beverages Pvt. Ltd., Dasna Hapur (appellants unit is in Jaipur). The Department observed that the appellant has not paid the amount equal to the duty leviable on transaction value on the clearance of capital goods, as per proviso to sub rule 5A (a) (II) of Rule 3 of CCR, 2004. Accordingly Show Cause Notice bearing number 239 dated 9.5.2019 was served upon the appellant proposing the recovery of an amount of Rs. 75,930/- along with interest a....
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....nsaction value. The findings of the Adjudicating Authority Below considering the said value as transaction value and applicability of proviso to aforesaid Rule are alleged to be wrong. It is further submitted that the extended period of limitation has wrongly been invoked by the department. There is no question of any suppression of facts nor of any malafide intent. Hence, the penalty has also been wrongly imposed. The order is accordingly proposed to be set aside and appeal is prayed to be allowed. . 4. While rebutting the submissions, learned Departmental Representative has laid emphasis upon the findings of Commissioner (Appeals) in para 8.1 of the Order under challenge which reads as follows: "I find that the assessee has cleared use....
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....age points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely :- (i) for computers and computer peripherals : for each quarter in the first year @ 10% for each quarter in the second year @ 8% for each quarter in the third year @ 5% for each quarter in the fourth and fifth year @ 1% (ii) for capital goods, other than computers and computer peripherals @ 2.5% for each quarter : Provided that if the amount so calculated is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value." 6. The manufacturer buys the capital goods in order to use it ....
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....alue" means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter; but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods." 9. Learned Counsel also emphasised that since the goods/ generato....
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....lated units recognised the clearance to related unit as sale. The adjustment of accounts in respective unit becomes consideration received by the recipient and accordingly the entire process of transfer of the operation of goods is a transaction of sales and the values as mentioned in the invoice becomes the transaction value. 11. The above discussion is sufficient to hold that the above question of adjudication stands answered in affirmative i.e. Rule 3(5A) (a) the proviso thereof is applicable to the impugned transaction of the generator set after use by the appellant from one unit to another. Since the appellant has given the value of Rs. 6,14,322/- in the invoice while making the said transfer, I am of the opinion that the said value h....