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2014 (11) TMI 964 - AT - Central ExciseWaiver of pre deposit - manufacture of motor vehicles - body building activity on the duty paid chassis falling under CH 8706 - Exemption under benefit of Sl No. 39 of Notification No. 6/2006-CE dated 01.03.2006 and Sl. No. 276/2012 CE dated 01.03.2012 - Suppression of facts - Held that:- AB Volvo owns the technology relating to manufacture of Volvo Buses and the fact that both the parties supplying chassis and building chassis are subsidiaries of AB Volvo would result in a situation that there cannot be any sales transactions between two subsidiaries. No judicial decisions or provisions of Statute have been cited to come to the conclusion that two subsidiaries of one company are to be considered as one and there cannot be sale and purchase between the two. We are also unable to understand how the transactions between the two companies result in a situation that ownership of the chassis does not change hands. Even if it remains within the group, it does not mean that the supplier of chassis did not sell the busses to the appellants who built the chassis on the same. The Notification clearly provided exemption when the chassis is sold and body is built on it and no CENVAT credit is taken. The whole case is built on the premise that there cannot be a sale and purchase between two subsidiaries and transfer of ownership does not take place. It is not supported by any statutory provision. even if VBT and VIPL are related persons, that will be applicable only for valuation of the goods and the very fact that provisions of Section 4 recognizes sales to related persons and provided that value in such cases has to be arrived at on the basis of the price at which goods are sold by related persons itself would show that there can be transfer of ownership, transfer of possession and sale and purchase between two related persons. appellant has been able to make out a case on merits for complete waiver - Stay granted.
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