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2014 (2) TMI 499 - AT - Central ExciseValuation of goods - Related parties - Application of Rule 10 read with Rule 8 of the Central Excise Valuation Rules, 2000 on the basis of 110% of the cost of production - Held that:- Show cause notice treats the respondent and M/s P.S. Steel Tubes (P) Ltd. as related persons only on the basis that they are interconnected undertakings in terms of its definition of this term as given in Section 2 (41) of the Companies Act and the show cause notices, nowhere discusses as to how the conditions prescribed in Rule 10 of the Central Excise Valuation Rules, 2000 are satisfied, that is either the buyer is holding company or subsidiary company of the assessee or the two are so connected that they are also related in terms of Clause (ii), (iii) or (iv) of Clause (b) of sub-Section (3) of Section 4 of the Act. There is absolutely neither any allegation, nor any evidence to show that the respondent and M/s P.S. Steel Tubes (P) Ltd. have interest in the business of each other. Neither M/s P.S. Steel Tubes (P) Ltd. is holding company or subsidiary company of the respondent nor there is any evidence to prove that the respondent are so connected with M/s P.S. Steel Tubes (P) Ltd. that they are also related in terms of Clause (ii), (iii) or (iv) of Section 4 (3) (b). In view of this, the respondent and M/s P.S. Steel Tubes (P) Ltd. cannot be treated as related persons and, as such, there is no infirmity in the impugned order - Decided against Revenue.
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