Excise Valuation Rule 8 Inapplicable to Prototype Vehicle Testing Clearances: CESTAT Mumbai

Advertisement Mahindra & Mahindra Ltd. Vs Commissioner of Central Excise (CESTAT Mumbai) The appellants, manufacturers of prototype commercial vehicles, cleared prototype trucks to their own manufacturing units for testing after paying central excise duty by determining value under Section 4(1)(b) of the Central Excise Act, 1944 read with Rule 4 of the Central Excise Valuation Rules, 2000. The Department contended that the clearances were to the appellants’ own units for commercial purposes and, therefore, valuation should be made under Rule 8 at 110% of the cost of production. Althou...