New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2017 (4) TMI 989 - CESTAT MUMBAI

2017 (4) TMI 989 - CESTAT MUMBAI - TMI - Valuation - related party transaction - whether the appellant and partnership firm concern M/s. Randeep Automobiles wherein HUF of Shri. B.G. Gandhi and M.G. Gandhi are the partners are related person and value at which the M/s. Randeep Automobiles sold the goods shall be treated as transaction value of the appellant - Held that: - there is nothing on record that there is any flow back of any extra consideration from M/s. Randeep Automobiles to the respon .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

- Dated:- 8-3-2017 - Mr. Ramesh Nair, Member (Judicial) And Mr. Raju, Member (Technical) Shri. Sanjay Hasija, Superintendent(A.R.) for the Appellants Shri. H.G. Dharmadhikari, Advocate for the Respondent Per : Ramesh Nair This appeal is directed against Orders-in-Appeal No.AT/630 & 631/M-III/2005 dated 30-11-2005 passed by the Commissioner of Central Excise(Appeals), Mumbai Zone-II, whereby ld. Commissioner(Appeals) allowed the respondent's appeal therefore Revenue is before us. 2. The i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. Respondent's goods are sold through the said trading concern and since Shri. B.G. Gandhi and M.G. Gandhi also directors of the respondent company both the concern are related as per the valuation provision effective from 2000, the value at which goods were sold by M/s. Randeep Automobiles shall be the assessable value for the purpose of charging excise duty on the clearances made by the respondent's company. The adjudicating authority also observed that payment of ₹ 5 Lakhs was .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re the related person and as per the valuation provisions of 2000, price at which M/s. Randeep Automobiles sold the goods of respondent company should be taken as assessable value. 4. Shri. H.G. Dharmadhikari, Ld. Counsel for the respondent submits that respondent is private limited company and M/s. Randeep is partnership concern wherein no independent person such as Shri. B.G. Gandhi and M.G. Gandhi are the partners. He further submits that even if the independent director of the respondent com .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. 5. We have carefully considered the submissions made by both sides. 6. We find that there is nothing on record that there is any flow back of any extra consideration from M/s. Randeep Automobiles to the respondent company. Respondent company is a private limited company and M/s. Randeep Automobiles is partnership firm therefore both are not related in the eyes of the law. The transaction of ₹ 5 lakhs as loan on payment of interest cannot be the reason for holding partnership and private .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to the said wholesale buyers. There is no allegation that the prices charged to M/s. Randeep Automobiles were lower or depressed than the prices charged to other Wholesale Dealers/Government Agencies for 65% of the goods. This was reiterated by the appellants before the adjudicating authority at the time of personal hearing on 19.05.2005 as recorded in para 26 of impugned order. This is not contested by the adjudicating authority. M/s. Randeep Automobiles are buying only nearly twenty fine perc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l duty is for this price difference. The present case is squarely covered by the law declared by the Apex Court in Saci Allied Products Vs. CCE - Meerut[2005(183) ELT 225(S.C.)]. In that case the appellants were selling 65% of the goods to independent wholesaler buyers. Though the price for 'related person' was less, the duty was being paid at the price charged to independent wholesale buyers. It was held that- "Where sales are made by the assessee to wholesale buyers who are unrela .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ce to independent wholesale dealers, satisfying the requirement of Section 4(1) (a) of the Act is available, then that price should be treated as the assessable value even in respect of sales is related person also'/. In view of the above finding the question whether M/s. Randeep Automobiles could be treated as a related person of appellant No.1 is a question of academic interest only. The adjudicating authority has relied upon the Apex court judgment in CCE Vs. I.T.E.C. (P) Ltd-2002(145) EL .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

stoms which is reported in 2002(143) ELT 244 held that- The fact that two public limited companies have common director does not mean that one company has an interest in the business of each other" The provisions of related person have been incorporated in the act to check under valuation. When the price charged to alleged related person is same as that to independent wholesale buyers, no investigation into the nature of relationship is called for. The judgment discussed above was under Sec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version