2026-VIL-816-CESTAT-HYD-CE
  1. Home
  2. 2026-VIL-816-CESTAT-HYD-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Valuation of Excisable Goods under Rule 7 of Central Excise Valuation Rules 2000 - Appellants are engaged in the manufacture of MS Ingots and clear goods directly as well as through their registered depot - Department ignored the actual transaction value and adopted the highest price of the week, raising a demand on the premise of "greatest aggregate value" - Whether Rule 7 of Central Excise Valuation Rules 2000 permits adoption of highest price in respect of actual transaction value – HELD - The Supreme Court in Ispat Industries case has held that the valuation of excisable goods must be determined based on the actual transaction value and not on a hypothetical or artificial valuation. Rule 7 of the Central Excise Valuation Rules 2000 provides that the value shall be the normal transactional value at the depots. The expression "greatest aggregate quantity" refers to the price at which the maximum quantity is sold, not the highest price at which a smaller quantity is sold - The department's method of adopting the highest price arbitrarily and ignoring the bulk transactional values is legally unsustainable, as it is contrary to the settled law - The appellants have demonstrated uniform pricing at the factory and depot, with no price fluctuation or manipulation, and complete transparency in invoices. This satisfies the requirement of Rule 7 of the Central Excise Valuation Rules 2000 - The entire demand is based on recorded transactions, filed returns, and verified invoices, and there is no suppression, misstatement, or intent to evade. Therefore, the extended period and penalty are not sustainable - The impugned order is set aside and the appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GSTAT Appeal filed wrongly...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?