2005 (10) TMI 97 - SCH - Central Excise

Valuation (Central Excise) - Held that - Assuming that the assessee was related to its subsidiary company i.e. M/s. Best & Crompton Ltd. (B & C.L.), this by itself would not be sufficient for the purpose of invoking the Central Excise (Valuation) Rules, 1975 read with Section 4(1)(a) of the Central Excise Act, 1944. The department would have to go further and show that the relationship has introduced an element other than purely commercial consideration in effecting the sale by the assessee to the BCL. No such evidence has been produced by the Revenue - Decided against Revenue.

Summary

The Supreme Court dismissed the appeal as the Revenue failed to show that the relationship between the assessee and its subsidiary introduced a non-commercial element in the sale.