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TMI Blog2009 (3) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... arrived at on the basis of Valuation Rules and not on the basis of export price of M/s. Mohanlal Mahavirchand. The learned Advocate, Shri Paresh Dave, submits that in this case the job worker (the appellant) and M/s. Mohanlal Mahavirchand are related persons and the decisions of the Hon' ble Supreme Court in the case of Ujagar Prints v. Union of India reported in 1989 (39) E.L.T. 493 (S.C.) and Pawan Biscuits Co. Pvt. Ltd. reported in 2000 (120) E.L.T. 24 (S.C.) are not applicable to the facts of the case. In this case appellants had not acted as an independent job worker but had processed grey fabrics received from a related merchant. Similarly, the Commissioner (Appeals) was not correct in holding that the ratio of decisions of the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions made by both the sides. This is a very peculiar case. Invariably, we find appellants claiming that the purchaser is not a related person and therefore price charged to him should be accepted. In this case the appellants claim that the buyer is a related person and therefore the price charged by him should be taken into account for the purpose of Section 4 of Central Excise Act, 1944. This is because the appellants are eligible for deemed credit on the basis of value of the goods and the deemed credit has nothing to do with the cost of raw materials. However, it has to be accepted that this should not be a consideration for deciding the case in hand but has been mentioned only for the purpose of academic interest. 4. The Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng is owned by a body corporate and the other is owned by a firm, if one or more partners of the firm,- (a) hold directly or indirectly not less than fifty per cent of the shares, whether preference or equity, of the body corporate; or (b) exercise control, diredtly, or indirectly, whether as director or otherwise, over the body corporate. (v) one is owned by a body corporate and the other is owned by a firm having bodies corporate as its partners, if such bodies corporate are under the same management; (vi) if the undertakings are owned or controlled by the same person of the same group; (vii) if one is connected with the other either directly or through any number of undertakings which are inter-connected undertakings within the mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods are not sold to such buyers, to buyers (being related person), who sells such goods in retail : Provided that in case where the related person does not sell the goods but uses or consumes such goods in production or manufacture of articles, the value shall be determined in the manner specified in rule 8. 9. From the language of aforesaid Rules 9 and 10 of Central Excise Valuation (Determination of Excisable Goods) Rules, 2000 one can say that where goods are sold through inter-connected undertaking, the value at which the goods are sold by such inter-connected undertaking shall be the assessable value. However, for such valuation the inter-connected undertaking should also be related in any of the manner described under afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplier of the raw material), where the dealing between the two are on principal to principal basis. The Circular No. 619/10/2002-CX., dated 19-2-2002 clarified that under the new valuation provisions, introduced with effect from 1-7-2000, there is no departure from the principles laid down by the Apex court in the above two decisions, in respect of goods manufactured on job work basis after 1-7-2000. The Hon'ble Tribunal has also held in the case of Tara Industries Ltd. v. CCE - 2003 (161) E.L.T. 758 (T) and Dolphin Laboratories Ltd. 2005 (185) E.L.T. 206 (Tri.-Del.) that goods produced on jobwork basis are required to be valued according to the rule laid down by the Apex court's judgment in the case of Ujagar Prints Ltd. From the facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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