Precedence of Rule 4 over Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000

Abstract

Valuation under rule 8 mainly referred to goods where no part sale was effected or such goods which were wholly consumed within the unit. The Rule now provides that where whole or part of the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value of such goods that are consumed shall be one hundred and ten per cent of the cost of production or manufacture of such goods. Rule 4 are in any case to be preferred over the provisions of Rule 8 not only for the reason that they occur first in the consequential of the valuation Rules but also for the reason that in a case where both the Rules are applicable, the application of Rule 4 will be allowed to determine value which will be more consistent and in accordance with the parent statutory provisions of Section 4 of the Central Excise Act 1944.