2008 (4) TMI 300

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....sentative, for the Appellant. Shri M.M. Mathkar, JDR, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. - The stay petition has been filed by the appellant seeking waiver of pre-deposit of the duty and penalty imposed by the department. The duty and penalty ordered to be recovered on the inputs transferred by them to their sister unit. The stand taken by the department is that the....

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.... one's own factory, valuation would be done as per Rule 8 of the Valuation Rules i.e. the assessable value will be 115% of the "cost of production" of the goods. If the same goods are partly sold by the assessee and partly consumed captively, the goods sold would be assessed on the basis of "transaction value" [Provided they meet the conditions of Sec. 4(1)(a) and the goods captively consumed woul....

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....ved, as such on sale, there should be no problem in ascertaining the transaction value by application of Sec. 4(1)(a) or the Valualtion Rules, [Provided tariff values have not been fixed for the inputs or they are not assessed. under Section 4A on the basis of MRP.] There may be cases, where the inputs or capital goods are removed as such to a sister unit of the assessee or to another factory o....

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....only removal of such input/capital goods, outside the factory, is in the nature of transfer to a sister unit. In such a case, proviso to Rule 9 will apply and provisions of Rule 8 of the valuation rules would have to be invoked. However, this would require determination of the cost of production or manufacture, which would not be possible since the said inputs/capital goods have been received by t....