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TMI Blog2010 (5) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... i J.S. Negi, SDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. - The prayer in the application is to dispense with the condition of pre-deposit of service tax of Rs. 3,71,72,276/- confirmed against the appellant along with imposition of penalty of identical amount under the provisions of Section 78 of Finance Act, 1994. In addition, penalty of Rs. 5,000/- stand imposed under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oice, wherein the duty was paid on the value, which the appellant was charging from his customer, in terms of the provisions of Rule 9 of the Central Excise Valuation Rules, 2000. However, M/s. Welcast Steel Ltd. raised the commercial invoice against the appellant, wherein the price shown was less than the price at which the goods were sold to their customers. In turn, the appellants raised the bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods from WSL and seller to ACC. In the records of Central Sales Tax authorities, it is showing that the sale made by WSL to AIA is an interstate sale and the sale made by the AIA to ACC is also an interstate sale made during movement of goods from AIA to ACC in terms of Section 6 of the Central Sales Tax Act. It is clear that there is no movement of goods either real or contemplated from WSL to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to create a camouflage of interstate sale when no such movement takes place. This is done, not for a single transaction, but for numerous transactions over a period of time without entering into a written contract. This shows a perfect understanding between the parties involved, as it should be between a holding and a subsidiary company. The entire transaction is of a sale from WSL to ACC and AIA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, we really fail to understand as to how the profit made by M/s. AIA for sale of goods to M/s. ACC can be termed to be commission or discount so as to make it liable to Service Tax. We, prima facie, agree with the learned advocate that the entire excise duty having been paid on the full value of transaction, no service tax can be confirmed against the appellant. 6. We, accordingly, dispens ..... X X X X Extracts X X X X X X X X Extracts X X X X
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