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2018 (3) TMI 766 - AT - Central ExciseValuation - the goods cleared by Unit-I (100% EOU) to Unit-II (DTA) were undervalued - Some goods were cleared clandestinely without payment of duty from Unit-I to Unit-II. Undervaluation - entire basis for rejecting the transaction value at which goods were cleared from appellant to Unit-II is the relationship between them - Held that: - Merely because the two units are related persons, the same would not ipso facto be the ground for rejecting the transaction value. Rule 3(3)(a) of the Customs Valuation Rules, 2007 specifically provides that 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 imported goods indicate that the relationship did not influence the price - The comparison of values can only be made in respect of consignments which compares in terms of identity of the goods as well as the quantity of the transaction. Hence, this comparison is not a valid basis for rejecting the transaction value. Clandestine removal - Held that: - there is no corroborative evidence on record to substantiate the stand of the Department that the goods reflected in the diary titled as “MONARK” were clandestinely cleared. The Department also has not carried out investigation regarding the purchase of extra raw material required for manufacture of such additional quantity of Unit-I. During the verification of record at Unit-I and Unit-II, no discrepancies have been noticed in respect of quantity of raw material or finished goods vis-a-vis the statutory documents - the charge of clandestine clearance cannot be upheld only on the basis of the seized private record especially in view of the fact that the statements admitting clandestine clearance of such goods stand retracted. Appeal allowed - decided in favor of appellant.
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