TMI Blog2007 (7) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... are a private limited company whereas the buyer is a partnership firm. Four of the Directors in the Appellants company are partners in the buyers partnership firm. The Original Authority has held that the Appellants and the buyer are inter-connected undertakings and there is no challenge to that in this appeal. 3. Shri S.K. Bagaria, ld. Sr. Advocate appearing for the appellants states that under Rule 10 of the Central Excise Valuation Rules, 2000, the clearances to an inter-connected company are required to be dealt under Rule 10(b) as if they are not related if such undertakings are not otherwise related under Section 4 (3) (b)(ii)(iii)(iv). He further states that out of these three sub-clauses only clause (iv) is relevant and the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) E.L.T. 16 (S.C.). (iv) Commissioner of Central Excise, Mumbai v. Universal Luggage Mfg. Co. Ltd. -2005 (190) E.L.T. 3 (S.C.). (v) Alembic Glass Industries Ltd. v. Collector of Central Excise and Customs - 2002 (143) E.L.T. 244 (S.C.). (vi) Commissioner of Central Excise, Surat v. Besta Cosmetic Ltd. - 2005 (183) E.L.T. 132 (S.C.). 4. With the help of these decisions, he argues that since the Department has not demonstrated mutuality of interest between the buyer and the seller and the prices are not influenced by any extra commercial consideration, the prices at which the appellants have sold the goods to the buyer which is also identical to prices charged by other suppliers, the impugned order assessing the goods at 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat other suppliers have supplied the goods at same price to the same buyer, there is no justification for adopting a cost construction method and applying 115% of the cost to arrive at the value. In view of our observations above, we find that the price at which the appellants have sold their goods are acceptable and since duty has been paid on such value, the demand confirmed by the impugned order is not sustainable and the same is set aside. The demand of interest and penalty imposed on the appellants are also set aside. The appeal is allowed with consequential relief to the Appellants. The Cross Objection filed by the Department also stands disposed off. (Dictated and Pronounced in the open Court) - - TaxTMI - TMITax - Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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