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2016 (3) TMI 159 - CESTAT BANGALORE

2016 (3) TMI 159 - CESTAT BANGALORE - TMI - Valuation - Related party transaction - Applicability of provisions of Rule 4 - clearance of waste and scrap, which originates during the manufacture of final product, without payment of duty - extended period invoked - Held that:- Commissioner (A) has only observed that since there was suppression, the extended period is invocable. However, there is no reference to any positive act on the part of the assessee so as to suppress or misstate the value wi .....

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said to have been filed by them with the Revenue. - E/MISC/294/2010 in E/813/2007-DB, E/822/2007-DB, E/823/2007-DB, E/824/2007-DB, E/825/2007-DB, E/813/2007-DB, E/822/2007-DB, E/823/2007-DB, E/824/2007-DB, E/825/2007-DB - Final Order No. 20234-20238 / 2016 - Dated:- 10-2-2016 - SMT. ARCHANA WADHWA, JUDICIAL MEMBER AND SHRI ASHOK K. ARYA, TECHNICAL MEMBER For the Petitioner : Shri Raghavendra, Advocate For the Respondent : Mr. Mohd. Yousaf, Addl. Commissioner (AR) ORDER PER : ARCHANA WADHWA All t .....

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dent wholesale buyer. The value adopted by the appellant for sale of their final product to the related party was marginally less than the value at which the product was sold to the individual buyers. 2.1As a result of investigations, proceedings were initiated against the appellant by way of issuance of show-cause notice dated 13.2.2006 raising demand of duty for the period October 2000 to October 2005, by invoking the provisions of Rule 11 read with Rule 9 of the Valuation Rules. The notice pr .....

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djudicating authority did not accept the above contention and confirmed the demand, as proposed in the show-cause notice, even though he observed that Revenue cannot directly adopt Rule 9 and Rule 10, without first exhausting the previous Rules. On appeal, Commissioner (A) observed that Rule 4 is the proper Rule, which is required to be adopted in those cases where the goods are partly sold through related persons and partly through independent wholesale buyers, but still confirmed the demand by .....

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that about 70% of sales are to the trading unit and price charged is approximately 2% less compared to the price charged to independent buyers from the factory gate. It is argued by the appellant that the price so charged less to the related person is not affected by extraneous considerations does not appeal to reason. Why is price charged to related person less than charged to independent buyer? No reason is advanced by appellant and it cannot be fair price. The original authority has rightly d .....

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annot be adopted and it is the factory gate sale price to individual buyers which has to be adopted even in respect of sales to the trading units, he went ahead and confirmed the demand. We find that the said order of Commissioner (A) is self-contradictory order. On the one hand, he is accepting the appellants stand that Rule 4 is required to be followed and on the other hand, he proceeded to confirm the demand. We also note that the said part of the impugned order of Commissioner (A) does not .....

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