TaxTMI 
TaxTMI 
2024 (4) TMI 3
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.... tile fixing cement adhesives and grouts, floor levelling compounds, etc., falling under Chapter 34 and waterproofing compounds under Chapter 38 of the Central Excise Tariff Act, 1985. During the relevant period, that is, from April 2008 to September 2008, they have cleared the goods to their depots from the factory on stock transfer basis by adopting the price prevailing at the depots at the time of clearance in terms of Rule 7 of Central Excise Valuation (Determination of price of Excisable Goods) Rules, 2000. Consequently, after negotiation with the industrial consumers who purchased the goods, they could able to sell from the depots to their customers at a price lower than the arrived transaction value on which the goods were assessed a....
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....aid to the department is refundable. In support, she has referred to the judgement in the case of * LML Ltd. vs. CCE, Kanpur: 2003 (155) ELT 532 * CCE, Vishakapatnam vs. Andhra Pradesh Mills Ltd.: 2006 (198) ELT 237 * WEP Peripheral Ltd. vs. CCE, (Appeals), Hyderabad: 2007 (213) ELT 18 4. Learned Authorised Representative for the Revenue has submitted that since the price at which goods are sold at or nearest to the time of sale from the depot is applied to the clearance of the goods on stock transfer basis from the factory, therefore, subsequent redetermination of the price without resorting to provisional assessment cannot be considered to be in accordance with the provisions of the Central Excise Valuation (Determination of price ....
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....: "14. The lower authority's conclusion that the respondent has paid the differential duty, when the goods are sold at higher prices from depots and hence when the goods are sold at lower prices refund is allowed is not understandable because, when the goods are sold from depots at higher/lower price, the goods to be sold from the factory at that time has to be cleared adopting such higher/lower price and it is not having any bearing whatsoever, on the value of goods cleared already. Consequently, it does not result in any short/excess payment of duty on the goods cleared already from the factory. I find the lower authority has not understood the valuation provisions and has allowed the refund by misreading and misinterpreting the law....
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....vant point, of time, when the goods are cleared to depot on stock-transfer basis from where the goods are ordinarily sold, for the purpose of discharging duty liability at the time of removal of goods from the factory, the price prevalent at the same time or at the nearest point of time at the depot should be ascertained and on that price duty liability has to be discharged. In the instant case, the appellant-assessee has discharged duty liability accordingly. Subsequent change in prices effected by the appellant at the depot does not affect the assessable value already determined and on which duty liability has been discharged. If that is allowed, the very object and purpose of Rule 7 of the Central Excise Valuation Rules will be totally d....