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2014 (4) TMI 1115 - CESTAT BANGALOREValuation - adoption of profit margin - requirement of pre-deposit - Held that:- As submitted by the learned counsel, there is no basis for adopting the profit margin of 41.48%. Commissioner himself has observed that the profit margin has been taken on the basis of the highest price at which the appellant has been able to sell the goods. Taking notice of the fact that there are three types of raw materials imported, different types of goods manufactured, the adoption of the highest price without considering the type of material and other transaction does not appear to be supported by any legal provisions. The rule itself provides for normal transaction value and determination of normal transaction value which has been given a go-bye by the learned Commissioner. In the order as well as in the show cause notice, there is absolutely no disclosure as to what were sales made to independent purchasers and at what price and who are the purchasers and there is also no discussion as to why such price could not have been adopted. There is also no evidence to show that the manufacturer and buyer and the job worker are related. In such a situation, we do not find that Department has made out a clear case of undervaluation against the appellant. Going by the submissions made by the learned counsel, which shows that in substantial no of transactions, the appellant had made profits would also support the case of the learned counsel and his other submissions also show that appellant has made out a prima facie case in their favour. Under these circumstances, the requirement of pre-deposit is waived and stay against recovery is granted during the pendency of appeal.
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