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2019 (3) TMI 856 - AT - Central ExciseMethod of Valuation - supply of goods to related as well as unrelated person - applicability of Rule 9 of the Central Excise Valuation Rules - penalty - Held that:- As per the Show Cause Notice itself, the appellants were supplying their goods to various customers and not just to related persons. As per the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, Rule 9 would be applicable when the assessee sells the goods only to a related person - CBEC in the Circular dated 01.07.2002 has clarified that Rule 9 cannot be applied in such cases when goods are sold party to related persons and partly to independent buyers and that it covers only those cases where all the sales are to related persons only - it would be in the fitness of things that the matter is once again re-looked into by the adjudicating authority Penalty - Held that:- Irrespective of the final outcome of such de novo adjudication, it is noted that the entire issue has emanated out of an interpretational dispute on the applicability or otherwise of Rule 9 of the Central Excise Valuation Rules. This being so,the imposition of penalties under Section 11AC of the Act is not warranted. Appeal allowed in part and part matter on remand.
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