TMI Blog2014 (2) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... e sub-rule (3) of Section 4, valuation has to be done by treating both the parties as if they are not related persons for the purposes of sub-section (1) of Section 4. No evidence has been adduced by the revenue to show these two firms are related as provided for in the Companies Act or they have mutuality in the business of each other. As regards the application of Rule 4 to the transactions, the said Rule envisages making of adjustments on account of difference in the dates of delivery of such goods and of the excisable goods under assessment as may appear reasonable. There is a variation in the dates of delivery but also the quantities lifted by JSW Steel are substantial and regular when compared to the quantities sold to other indep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt had been clearing similar goods to other independent buyers and the average price charged to JSW Steel Ltd. is less by about Rs. 730/- per MT. Therefore, the department was of the view that the prices at which the appellant had sold the goods to independent buyers should be taken as the basis in terms of the rule 4 of the valuation Rules, 2000. Accordingly, a show-cause notice dated 04/06/2012 was issued to the appellant demanding differential Central Excise duty of Rs. 1,40,94,616/- for the period May 2011 to November 2011 along with interest thereon and also proposing to impose penalties. The said notice was adjudicated vide the impugned order and the Ld. adjudicating authority has confirmed the duty demand along with interest and also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these parties are related. It is therefore, their plea that the prices charged by the appellant to JSW Steel ltd. is a transaction price acceptable under Section 4 (1) (a) itself. It is further contended that the HSW Steel ltd. lifts 30% of the production of the appellant and in view of the huge quantity of production lifted, the appellant has given discount of about 2% which is a normal business practice. It is further contended that in respect of the particular type of steel supplied to JSW Steel ltd., the said buyer has lifted 90% of the production of the goods and since the transactions are regular and of higher magnitude, a lower price has been charged. Considering the price of HR Coils ranging between Rs. 35,000/- to 36,000/- per MT, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sub-rule (3) of Section 4, valuation has to be done by treating both the parties as if they are not related persons for the purposes of sub-section (1) of Section 4. No evidence has been adduced by the revenue to show these two firms are related as provided for in the Companies Act or they have mutuality in the business of each other. As regards the application of Rule 4 to the transactions, the said Rule envisages making of adjustments on account of difference in the dates of delivery of such goods and of the excisable goods under assessment as may appear reasonable. In the present case not only there is a variation in the dates of delivery but also the quantities lifted by JSW Steel are substantial and regular when compared to the quan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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