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2018 (9) TMI 1887 - AT - Central ExciseValuation - related party transaction - case of the department is that since the appellant sold the goods to brother of the proprietor, therefore, they are related persons - Rule 8 of CER - HELD THAT:- The lower authorities have demanded the duty on the ground that the appellant supplier and buyers of the goods are proprietorship of brothers. However, no investigation was carried out to bring evidence on record, there is no mutuality such as flowback of funds, mutual interest in the business of each other, etc. Therefore, merely because the appellant’s supplier and buyer are proprietorship of brothers, this alone cannot be the reason for holding that both are related persons. Moreover, the Adjudicating authority has applied 110% on the value of goods in terms of rule 8 of Central Excise Valuation Rules, 2000. However, no basis for such calculation was relied upon in the show cause notice. Therefore, on that account also, the demand is not correct. Appeal allowed - decided in favor of appellant.
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