Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Rule 7 Central Excise Valuation Rules | Transaction Value Must Reflect Actual Sale Price, Not Arbitrary 'Greatest Aggregate Value' : CESTAT Hyderabad
CESTAT Hyderabad ruled that excise duty valuation under Rule 7 must be based on the actual transaction value, rejecting the Department's demand predicated on the highest price of the week. The Tribunal emphasized the one-to-one correlation between factory clearance and depot sales, invalidating arbitrary valuation methods that disregard contractual agreements.