2019 (7) TMI 163 - AT - Central Excise

Valuation - Extended period of limitation - related party transaction - inter-connected undertakings - it was alleged that M/s. Khoday India Ltd. and M/s. Khoday RCA Industries are related to the appellant - valuation to be done in terms of Section 4 of Central Excise Act, 1944 or in accordance with the provisions of proviso to Rule 9 read with Rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000? - HELD THAT:- The appellant has been clearing the goods to its sister concerns as well as to 3rd party buyers. Further the stand of the appellant is that he has rightly followed the valuation rules. Further there were sales to other buyers in substantial proportions. Further the appellants have given detailed information regarding the clearances to the sister concerns as well as to 3rd party independent buyers but the Department did not examine those sales to the independent buyers and has only taken the clearances to their sister concern and confirmed the demand.

We further note that the appellant has attached the audit report of two audits conducted in June 2006 and November 2006 wherein the audit party did not raise any objections with regard to this issue of valuation and clearances made to the sister concern. Further we find that the Department has not brought any evidence on record to show that there was suppression of facts with intent to evade payment of duty.

Extended period of limitation - HELD THAT:- In the present case, invocation of extended period of limitation is not sustainable because the Department was aware about the clearances made by the appellant in June 2002 itself but they issued show-cause notice only in 2010 after 8 years which according to us is completely barred by limitation of time.

Since the entire demand is barred by limitation, we do not think it appropriate to give findings on merit.

Appeal allowed - decided in favor of appellant.