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2014 (8) TMI 749 - AT - Central ExciseWaiver of pre deposit - Valuation of goods - related person - mutuality of interest - determination of assessable value of the goods cleared to other units - Held that:- Applicant during the relevant period, manufactured and cleared sponge iron to independent buyers as well as to other two units, namely, M/s Jai Balaji Sponge Ltd., Ranigunj and Sri Ramrupai Balaji Steel Ltd., Durgapur. Basis of allegation of mutuality of interest rests on the facts that the Applicant and the other two Units have common Directors and common Head Office and the other two Units were shown as "related person" in the Balance Sheet of the Applicant. At this stage, it is difficult to accept that merely on these facts, it could be said that there have been mutuality of interests so as to bring them within the fold of Clause (iv) of Sub-section (3)(b) of Section 4, occurring in the definition of "related persons". Prima-facie, we are of the view that once the ingredients viz. Clause (ii) (ii) & (iv) of Sub-section (3) of Section 4, are not satisfied, the assessment of goods sold to these Units, would be in accordance with Rule 10 (b)(ii) of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. In other words, the "transaction value" at which, the Applicants sold/cleared the goods to these Units, namely, M/s Jai Balaji Sponge Ltd., Ranigunj and Sri Ramrupai Balaji Steel Ltd., Durgapur at the relevant time, be the assessable value for payment of duty. In the result, we find that the Applicants are able to make out a prima-facie case for total waiver of predeposit of dues adjudged. - Stay granted.
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