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2019 (2) TMI 745 - AT - Central ExciseValuation - related party transaction - goods sold by the appellant to their related entity Exide Products Limited (EPL) for further sale - case of the department is that the price at which EPL has sold the goods to their customers should be adopted for discharging duty in terms of 3rd proviso to Section 4(1)(a) of the Central Excise Act - Held that:- In the present case, admittedly the appellant has sold goods to independent customers in addition to sale to EPL. The price at which the goods were sold to independent buyers was adopted as the basis for the valuation of goods sold to EPL - Proviso (iii) to Section 4(1)(a) of the Central Excise Act, 1944 however, specifically excludes from its operation cases where the goods are partly sold to un-related wholesale dealer and partly to related person. It is clear from the wording of the said proviso itself. The Commissioner in the impugned order has admitted the fact that the appellant in addition to sale of the goods to EPL has also sold the goods to unrelated buyers. There is also no dispute on the fact that the comparable price to independent customer has been adopted as the basis for discharging duty on sale to EPL - further, in the present case there is no evidence led in by the department to show that the relationship has influenced the price for the same to be rejected. Similar issue has been decided by the Tribunal in the Appellant’s own case EXIDE INDUSTRIES LTD. VERSUS COMMISSIONER OF C. EX., CALCUTTA-III [2002 (2) TMI 817 - CEGAT, KOLKATA] wherein it was held that sale of goods to others buyers alongwith related party sale would not attract third proviso to Section 4(1)(a) of the Act. Appeal allowed - decided in favor of appellant.
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