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2019 (9) TMI 1522 - CESTAT NEW DELHIValuation - related party or not - requirement to pay duty on transaction value at which the said goods have been sold by the related person - suppression of material facts regarding sale of excisable goods to related person - extended period of limitation - HELD THAT:- The Court below have ignored the fact that there are also sales to unrelated parties at same prices or even lower price, as compared to the transaction value for clearance to M/s P. K. Industries. Further, classification of M/s P. K. Industries as related person of the appellant as per Accounting Standard AS(18) issued by the Institute of Chartered Accountants of India, is not equal to the definition of related person under Section 4(3)(b) of the Central Excise Act - Admittedly, in the facts of these appeals, the appellant is a Private Limited company whereas the said M/s P. K. Industries is a partnership firm and thus they are not interconnected undertakings. Another coordinate Bench of this Tribunal in M/S. PHILIPS ELECTRONIC INDIA LTD. AND PHILIPS ELECTRONICS NY. THE NETHERLANDS VERSUS CCE-CHANDIGARH [2015 (11) TMI 1161 - CESTAT NEW DELHI] under the fact that 97-98% of the goods were sold to related person and balance 2-3% to independent buyer, there being no allegation that independent buyer is also a related person and the transaction value of independent buyer was similar to sale price of alleged related person, there is no allegation that the transaction value that the independent buyer is not genuine. It was held that when assessee has sales on regular basis to independent buyers, it cannot be said that assessee has so arranged that goods manufactured by him are generally sold by him to or through a related person. These appeals by way of remand to the adjudicating authority to determine the show cause notice denovo in accordance with law - Appeal allowed by way of remand.
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