Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 697 - AT - Central ExciseValuation of goods - interconnected undertakings but not related - Revenue held that 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 - Held that:- Though the appellant and the buyer are interconnected undertakings as defined in Section 2(g) of the MRTP Act and hence, related in terms of the provisions of Section 4 (3)(b), they are not related as defined in the Companies Act. Therefore, in terms of Rule 10 of the Central Excise Valuation Rules, 2000 as the appellant is not related to the buyer as defined in the sub-clause (ii) (iii) & (iv) of the 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 independent buyers. In these circumstances, there is merit in the contention of the appellant that the discount of about 2% in the prices when compared to those sold to independent buyers cannot be considered as unreasonable. This factor has not been considered by the adjudicating authority. Therefore, we are of the considered view that the matter has to go back to the adjudicating authority for fresh consideration - Decided in favour of assessee.
|