rule 9 of central excise valuation rule

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CA. Niranjan Kumar (Querist)
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14 May 2011 sir, pls solve my confusion.

on 1.1.2011 Mr x sold final product to her wife, Mrs. X at Rs.1000/- per kg

Mrs. X sell all goods purchased from his husband to his son Mr Y. Mr. Y sells these goods in retail market.

Mrs. X sold the goods to Mr.Y as follows:
on 1.1.2011----@ 1500/-
on 15.1.2011----@ 2000/-

goods purchased on 1.1.2011 are sold by Mrs X to his son on 15.1.2011.

My confusion is that
what is the Assessable value of good sold by Mr. X to her wife Mrs. X on 1.1.2011?
whether 1500/- or 2000/-.

Thank U for your help.

U S Sharma

U S Sharma (Expert)
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14 May 2011 valuation would be done upto Y stage, as Y is son of X.

valuation will be done at the rate on which Mr Y sells the goods to retail market.

CA. Niranjan Kumar

CA. Niranjan Kumar (Querist)
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14 May 2011 Butsir,

Rule 9 in the central excise valuation rule, 2000 is written as--
----When the assessee so arranges that the excisable goods are not sold by an assessee except to or through a person who is related in the manner specified in either of sub-clauses (ii), (iii) or (iv) of clause (b) of sub-section (3) of section 4 of the Act, the value of the goods shall be the normal transaction value at which these are sold by the related person at the time of removal, to buyers (not being related person); or where such goods are not sold to such buyers, to buyers (being related person), who sells such goods in retail :
Provided that in a case where the related person does not sell the goods but uses or consumes such goods in the production or manufacture of articles, the value shall be determined in the manner specified in rule 8.

so i see that AV = the price charged by Mrs. X to Mr. Y on 1.1.2011 i.e. Rs.1500/-

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