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2018 (4) TMI 762 - AT - Central ExciseValuation - motor vehicle parts - related party transaction - goods cleared by the appellant to M/s Maruti Suzuki India Ltd, who were holding shares to the extent of 39% in the appellant‘s company - it was alleged that the valuation of goods cleared by the appellant to M/s Maruti Suzuki should be on the basis of Rules 8 & 9 of the Central Excise Valuation Rules, 2000 - whether the two parties are “related persons” as per Section 4(3) (d) of the Act? Held that: - there is no evidence on record of the fact that such alleged mutuality of interest has resulted in lower price due to extra commercial considerations - it cannot be said that the two companies are ‘related persons’ in terms of sub-clause (ii), (iii) or (iv) of Section 4(3) (b) of the Act. Valuation of goods as per Rule 9 read with Rule 8 of the Central Excise Valuation Rules, is applicable only in a case where goods are sold to or through a person who is related. Rule 10 of the Valuation Rules deals with the valuation of goods sold to or through “inter-connected undertaking”. Since the two companies are not related in terms of sub-clause (ii), (iii) or (iv) of Section 4(3)(b) of the Act, the valuation is required to be done in terms of Rule 10 (b) of the Rules which provides the valuation to be done as if they are not related persons. Appeal allowed - decided in favor of appellant.
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