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2016 (10) TMI 304 - AT - Central ExciseDemand of differential duty - Valuation - interconnected undertakings u/s 2 (9) of MRTP Act 1969 - rule 9 of the Central Excise valuation Rules 2000 - related persons - sale of goods - Holding-Subsidiary relationship - valuation - Transaction Value as per Section 4 of the 'Central Excise Act, 1944 - Held that: - The law is well settled in as much the transaction value can be rejected only if both the units have mutual interest in business of each other. While holding company may have an interest in the subsidiary company, subsidiary company may not have any interest in the holding company. The rule contemplates that entire production needs to be sold through the holding Company. The appellants sells 98% of his finished goods to outsiders/independent buyers, and only 2% of the finished goods manufactured are sold to the holding company - provisions of rule 9 are not invokable - demand of duty, interest and penalties not justified - appeal allowed - decided in favor of appellant.
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