2014 (6) TMI 547 - AT - Central Excise

Valuation of goods - sale to related parties - Valuation in terms of Rules 8 and 10 of Valuation Rules - Held that - appellants are also selling the ingots to independent buyers. The price at which the goods are being sold to the so called related units is either at par or more than the price at which goods are sold to independent buyers. We note that the provision of Rules 8 and 10 of Valuation Rules are applicable when the entire production is being sold to the related persons. Inasmuch as the price at which ingots are also being sold to independent wholesale buyers is available, the same is required to be adopted for the purpose of sale to the so-called related persons. As such, on this ground itself, we are of the view that the appellant has a prima facie case in its favour so as to dispense with the condition of pre-deposit of duty and penalty - Stay granted.

Summary

The Appellate Tribunal CESTAT NEW DELHI allowed the appellant's plea to waive pre-deposit of duty and penalty. The duty was contested due to valuation rules applied to sales of ingots to related units, but as sales to independent buyers were at par or higher, the Tribunal ruled in favor of the appellant.