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2016 (12) TMI 908 - CESTAT MUMBAIValuation - rejection of transaction value - related party transaction - interconnected undertaking - Section 4 of the Central Excise Act - Held that: - From rule 9 it is very clear that only in cases where goods are sold through the person as specified under clause (ii), (iii) or (iv) of clause (b) of Section 4 the transaction value at which the goods are sold by the said person shall apply and not the sale price at which goods are sold to these three category of person are made. Provision of rule 9 also suggests that merely because buyer is interconnected undertaking that alone is not sufficient for holding as related person. The show cause notice or original order have not brought any material to establish that the relationship between respondent and buyers company are one of the relationship as prescribed under sub clause (ii), (iii) or (iv) of Section 4(3)(b) of Central Excise Act therefore in our considered view even if it is accepted that the buyers company are interconnected undertaking of the appellant company it can not be treated as related person in terms of Section 4(3)(b). In absence of relationship as specified under sub clause (ii), (iii) or (iv) of Section 4 (3) (b). In this position, the transaction value of the goods between respondent and the so called interconnected undertaking is correct valuation and the same can not be disturbed, therefore value as provided under Rule 8 is not applicable in the present case - appeal rejected - decided against Revenue.
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