TMI Blog2004 (9) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... . These appeals are against an order of the Commissioner of Central Excise confirming a demand of duty of over ₹ 1.8 crores against M/s. Hatsun Food Company (HFC, in short), imposing on them penalties under Section 11AC of the Central Excise Act and Rule 173 Q of the Central Excise Rules, 1944 and also imposing penalties on Shri R.C. Chandramogan (Managing Partner of the above firm) and Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory gate sales to independent buyers were available, it was the price for such sales that would constitute 'normal price' for the purpose of assessment of the goods to duty of excise and that the price at which the major buyer, whether related or not, sold that goods to the ultimate customers was irrelevant. The show-cause notice, incidentally, also proposed penalties on HFC and its partne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of this Bench in the case of Hatsun Milk Food Ltd. (supra). Consequently, the penalties also require to be vacated. 3. Ld. SDR has endeavoured defend the order of the Commissioner by harping on the aspect of 'lifting the corporate veil . She has spoken of 'unity of interest' between HFC and HAPL. She considers that HFC is the manufacturing unit and HAPL is their marketing li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a clear parallel between this case and the case of Hatsun Milk Food. M/s Hatsun Milk Food Ltd. had sold their major production to a party who was considered by the department as related to the assessee, and the remaining goods were sold to buyers who were admittedly unrelated. In that case, it was also an admitted fact that the prices at which sales had been effected to the so-called related per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fected by HFC to HAPL during the period of dispute are liable to be assessed to duty on the basis of the price at which the former were selling identical goods during the same period at factory gate to other independent buyers, however small the proportion of such sales may be. The assessee, in this case, valued their goods only on this basis and paid duty accordingly. They are not liable to pay a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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