Sesa Sterlite Ltd Vs Commissioner of GST (CESTAT Chennai)
In the appeal of Sesa Sterlite Ltd. Vs Commissioner of GST, CESTAT Chennai addressed the issue of the central excise ad-valorem value of copper anode manufactured by Sesa Sterlite Ltd. This case sheds light on the interpretation of Central Excise (Valuation) Rules, 2000 and Cost Accounting Standards – 4 (CAS-4).
Sesa Sterlite Ltd, manufacturing copper anode, found themselves under scrutiny regarding the ad-valorem value of their product for central excise purposes. As no independent sales occurred and all transfers were made to their own unit, the assessment had to follow the Central Excise (Valuation) Rules, 2000 and Cost Accounting Standards – 4 (CAS-4).
The provisional assessments, finalized at a later date, led to a dispute. The adjudicating authority finalized the provisional assessment for the period from November 2002 to March 2003 by setting the value of copper anode at Rs.94,594/- per MT. The appeal, initiated by the aggrieved appellant, was rejected by the Commissioner (Appeals), leading to the case appearing before the CESTAT Chennai.
Here, the appellant’s counsel admitted their acceptance of the value determined in the Order in Original. They requested for netting the excess payment against the amounts short-paid before any demand was raised by the department. However, the Tribunal dismissed the appeal, stating that by accepting the valuation in the impugned order, the dispute no longer existed.
FULL TEXT OF THE CESTAT CHENNAI ORDER
This is an appeal filed by M/s. Sesa Sterlite Ltd. Tuticorin against Order in Appeal No. 214/2013 dated 27.8.2013 passed by Commissioner of Central Excise (Appeals), Madurai.
2. The facts of the case are that M/s. Sesa Sterlite manufacture copper anode in their smelter at Tuticorin and transfer the same to their own unit at Silvasa (Dadra & Nagar Haveli) and there is no sale of the product to any other independent buyer. Therefore, for assessment for copper anode, the central excise ad-valorem value has to be arrived at under the provisions of Central Excise (Valuation) Rules, 2000 and by following Cost Accounting Standards – 4 (CAS-4). The goods are hence cleared provisionally and the value finalized at a later date. The learned adjudicating authority in his Order in Original dated 28.5.2012 has finalized the provisional assessment for the period from November 2002 to March 2003 by fixing the value of copper anode at Rs.94,594/- per MT. Aggrieved by the order, the appellant has taken up the matter before the Commissioner (Appeals) who vide the impugned order has upheld the Order in Original and rejected the appeal filed by the appellant. The appellant has assailed the impugned order before us.
3. No cross-objections have been filed by the department.
4. We have heard Shri Vishal Agarwal, learned Advocate for the appellant and Smt. Sridevi Taritla, learned ADC (AR) for Revenue.
5. The learned counsel for the appellant has stated that much water has flown since the issue of the impugned order and that they are now not disputing the value fixed. He drew our attention to the table at para 5 of the Order in Original dated 28.5.2012 which shows the provisional values of copper anode declared by them under Rule 8 of the Central Excise (Determination of Price of Excisable Goods) Rules, 2000.
