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2019 (11) TMI 669 - AT - Central ExciseValuation - related party transaction - applicability of section 4 (1) (b) of Central Excise Act, 1944 read with Central Excise Valuation Rules, 2000 - short payment of duty - Scope of SCN - HELD THAT:- The show cause notice has been issued to the appellant on the basis of cost data that the appellant is selling the goods below the cost price, therefore, the selling price cannot be the assessable value of the goods in question. The appellant is located in the State of Jammu and Kashmir taking self credit/ refund of duty paid in cash. The duty paid in cash is an incentive to the appellant and if the same is taken into account then the appellant has earned the profit on the goods sold. In fact, cash incentive was given by way of duty paid in cash has been shared with their buyers. Therefore, the appellant earned profit on the goods sold by them. In that circumstance, the whole case of the Revenue alleged in the show cause notice is not sustainable. Scope of SCN - HELD THAT:- Moreover, the Commissioner in the adjudication order has treated buyer as related person as there is no allegation in the show cause notice that the appellant has sold the goods to the buyer, who is related person of the appellant. Therefore, the Commissioner has travelled beyond the scope of the show cause notice in the eyes of law. Appeal allowed - decided in favor of appellant.
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