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2017 (10) TMI 276 - CESTAT MUMBAIValuation - related party transaction or not? - whether the transaction between the respondents and two companies, M/s.Aquagel Chemicals Pvt. Ltd. Gujarat and M/s.Sree Rayalaseema Alkalis and Allied Chemicals Ltd. Andhra Pradesh are sale transactions or not? - Held that: - From the invoice of M/s.Aquagel Chemicals Pvt. Ltd. Gujarat, issued to respondent, M/s.Hindustan Lever Ltd., it is observed that it is a sale invoice wherein Central Sales Tax @ 4% was charged. From the aforesaid transaction, it is clear that in respect of noodles there is a transaction of sale from the respondent to M/s.Aquagel Chemicals Pvt. Ltd. Gujarat and M/s.Sree Rayalaseema Alkalis and Allied Chemicals Ltd. Andhra Pradesh and similarly in respect of soap, there is a sales transaction from M/s.Aquagel Chemicals Pvt. Ltd. Gujarat and M/s.Sree Rayalaseema Alkalis and Allied Chemicals Ltd. Andhra Pradesh to the respondents. Accordingly, it cannot be said that these transactions are not a sale transaction in the ordinary course of trade. This be so, the transaction value has to be taken for charging of Central Excise duty in terms of Section 4 (1) (a) of CEA, 1944. Rule 8 can be resorted to for valuation only when the transaction is not of sale. In the facts of the present case, the possession of the goods and ownership stands transferred from the respondents to M/s.Aquagel Chemicals Pvt. Ltd. Gujarat and M/s.Sree Rayalaseema Alkalis and Allied Chemicals Ltd. Andhra Pradesh, in respect of sale of soap noodles. The SCN only made a charge that transaction is not of a sale, which is absolutely incorrect on the face of the evidences. Appeal dismissed - decided against Revenue.
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