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2023 (8) TMI 181 - AT - Central ExciseMethod of valuation - Rule 9 read with Rule 11 of the Central Excise (Determination of Value) Rules 2000 or Section 4 of the Central Excise Act, 1944 - related party transaction - same goods are sold to TWL and independent buyers at the same rate - demand of differential value arrived at by 110% of cost of production - HELD THAT:- The impugned order has cited Board Circular No. 643/34/2002-CX., dated 1-7.2002 and concluded that When the goods are sold partly to related person and partly to independent buyers, there is no specific rule covering such a contingency. The adjudicating authority observed that in such cases, transaction value in respect of sales to unrelated buyers cannot be adopted for sales to related buyers since as per Section 4(1) transaction value is to be determined for each removal. It is observed that the adjudicating authority has wrongly interpreted the Board Circular. As per the Circular, when there is independent sale along with sale to ‘related persons’, Rule 9 is not applicable and recourse will have to be taken to the residuary Rule 11. As per the best judgment method under Rule 11, the value of the goods sold to the independent buyer should be the value for the sale to ‘related persons’ also - This view has been taken by the Hon’ble Apex Court in the case of Commissioner of Central Excise & Service Tax, Rohtak Vs. Merino Panel Products Ltd. [2022 (12) TMI 453 - SUPREME COURT]. The demands confirmed in the impugned order are not sustainable and are set aside - appeal allowed.
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