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2018 (11) TMI 736 - AT - Central ExciseMethod of Valuation - related party clearances or not - appellant were clearing 80 percent of the final product through two trading firms namely M/s Chetan Plastics and M/s Sanjay Packaging owned by Smt. Manjulaben Shah and Shri Sanjay Shah. He pointed out that the said persons were also Directors in the appellant’s company - Held that:- To invoke Rule 9 of the Central Excise Valuation Rules, it has to be first established that the two entities are related to each other. It is seen that the appellant is a company whereas the trading units are proprietorships. In these circumstances the two cannot be held to be related, in terms of section 2, clause 41 of the Companies Act, 1956, the definition relates only in terms of natural persons. Since, the foundation of the charge i.e, relationship, itself is not established, the other charges automatically fail - appeal allowed.
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