Full Judgment
1. Heard both sides. The dispute in this case relates to valuation of the impugned goods transferred by the appellants to their own unit for conversion into compressed gas. The Adjudicating Commissioner has held such transfer to be 'Sale' and has disapproved valuation of the impugned goods claimed by the appellants at the rate of 115% of the cost of production. The learned Sr. advocate draws our attention to Rule 8 and the proviso to Rule 9 of the Central Excise Valuation Rules, 2000 and the Board's clarification issued under Circular No. 643 (34) 2002-CX dated 1.7.2002. We find that under Sl. No. 5 of the Table attached to the said circular, valuation of captively consumed goods within same factory as well as transfer to a sister unit or another factory of the same company has been covered and it has been indicated that in the case of such transfer, the assessable value will be 115% of the cost of production of the goods in view of the provisions of Rule 8 and proviso to Rule 9 of the Central Excise Valuation Rules, 1975.
2. After hearing both sides and perusal of case records including the cited circular dated 1.7.2002, we are of the view that the transfer of the impugned goods to another unit of the appellant cannot be considered as 'Sale' and the valuation of such transfers has to be appropriately done on the basis of 115% of the cost of production as indicated in the Board's circular dated 1.7.2002. Accordingly, we set aside the impugned order and allow the appeal with consequential benefits.