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2023 (1) TMI 640 - AT - Central Excise100% EOU - Valuation - clearance of excisable goods to their sister concern units on payment of duty as DTA sale - related party transaction or not - present order has been passed without giving opportunity to file defence submission of SCN - violation of principles of natural justice - Time Limitation - HELD THAT:- The Learned Commissioner has gone only on the basis that the buyer and seller are related in terms of Rule 2(2) of CVR, and proceeded to judge transactions in terms of valuation rule ibid. However, in terms of Rule 3 (3)(a) of CVR, where the buyer and seller are related, the transaction value shall be accepted provided that the examination of the circumstances of the sale of the goods indicate that the relationship did not influence the price. Neither the show cause notice issuing authority nor the adjudicating authority have given reasons to hold that how the relation has indeed affected the price. The declared prices cannot be reviewed without any evidence to the effect that the relation between the appellant and the related buyer which has influenced the declared price or to the effect that there was a flow back of money between the appellant and related buyers. The proviso under Rule 3 (3)(b) provided that in applying the values used for comparison, due account shall be taken to demonstrate a difference in commercial levels, quantity levels, adjustments in accordance to provision of Rule 10 and cost incurred by the seller in sales in which he and the buyer are not related - In the present matter the grievance of the Appellants is also that difference in commercial levels, quantity levels was totally ignored by the Learned Commissioner - Further submission made by the appellants and judicial decisions relied upon by the appellant before him was not considered. The case needs to go back to the adjudicating authority for a proper examination of all the facts of the case, the submissions of the appellants including case laws in this regard and to pass a speaking and reasoned order as per law - Appeal allowed by way of remand.
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