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2018 (6) TMI 913 - AT - Central ExciseValuation - clearances made to related units/ interconnected units - whether the sale by the appellant to PSSTL and BAI can be treated as sales to “Related Person” and if so whether invoking of extended period by the Department which has been confirmed in the impugned order, is justified? Held that:- Audited Balance Sheet and tax audit report itself discloses that all the three firms including the appellant are related parties and all the Directors/ partners for the said three firms are relatives among themselves and holding key managerial position. Therefore there is no doubt left that the appellant and PSSTL and BAI are interconnected undertakings and it has been admitted also - Although a company, Partnership firm, Body Corporate, HUF, trust cannot be a relative of the others, but since the three companies in the present case are run/ managed by clause relatives, therefore the concept of “Related Person” of Clause of Section 4 (3)(b) is satisfied. It is establish that all the three companies falls under the ambit “Related Persons”. Therefore, the contention of the ld. Advocate for the appellant that their transaction with PSSTL and BAI are not sales to “Related Person” is rejected - In the present case the price charged by the appellant from PSSTL and BAI was lower then the price charged from un-related buyers, and therefore, the appellant is liable to pay the demand on the basis of price charged to un-related buyers by resorting to Rule 11 read with Rules 4 of Valuation Rules. Extended period of limitation - Held that:- Since the unit has been subjected to audit periodically, the price declaration have been extensively scrutinized with the related documents and therefore the Department could not allege any suppression on the part of the Appellant and could not have invoked extended period of limitation for demanding duty - The malafide intention to evade payment or suppression also cannot be attributed to the Appellant - extended period of limitation cannot be invoked. The matter is remanded to the Adjudicating Authority for the limited purpose of re-calculating the demand for the period which is within limitation alongwith interest and penalty, if any, after hearing the appellant on this limited aspect - appeal allowed by way of remand.
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