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TMI Blog2014 (12) TMI 823X X X X Extracts X X X X X X X X Extracts X X X X ..... said orders, the appellants are before us. 3. Heard both sides. 4. The learned Counsel appearing on behalf of the appellants submits that the appellants are a Private Ltd. Company and the buyer of the goods is a Public Ltd. Co. therefore, they cannot be terms as related persons as per the definition provided in Section 2(41) of the Companies Act, 1956. At the most, the allegation of the Revenue would have been that both the units are interconnected undertakings and for that purpose Rule 10(a) of Central Excise Valuation Rules will be applicable. In this case valuation as Rule 10(a) of the Central Excise Valuation Rules has not been proposed. Therefore, the valuation adopted by the lower authorities under Rule 8 of the Central Excise Valuation Rules is not sustainable. In the circumstance, he prays for setting aside the impugned orders. 4.1 To support this contention, the learned Counsel relied on the Board Circular F.No. 354/81/2000/TRU dated 30.06.2000 and the decision of this Tribunal in the case of South Asia Tyres Pvt. Ltd. v. CCE - 2003 (152) ELT 434 (Tri.). 5. On the other hand, learned A.R. appearing for the Revenue drew our attention to the impugned order wherein the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduction or manufacture of such goods. RULE 9. When the assessee so arranges that the excisable goods are not sold by an assessee except to or through a person who is related in the manner specified in either of sub-clauses (ii), (iii) or (iv) of clause 9b of sub-section (3) of section 4 of the Act, the value of the goods shall be the normal transaction value at which these are sold by the related person at the time of removal, to buyers (not being related person); or where such goods are not sold to such buyers, to buyers (being related person), who sells such goods in retail : Provided that in a case where the related person does not sell the goods but uses or consumes such goods in the production or manufacture of articles, the value shall be determined in the manner specified in rule 8. RULE 10. When the assessee so arranges that the excisable goods are not sold by him except to or through an inter-connected undertaking, the value of goods shall be determined in the following manner, namely:- (a) If the undertakings are so connected that they are also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other body corporate in any other manner; (iv) where one undertaking 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, directly or indirectly, whether as director or otherwise, over the body corporate; (i) if 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; (ii) if the undertakings are owned or controlled by the same person or by the same group; (iii) if one is connected with the other either directly or through any number of undertakings which are inter-connected undertakings within the meaning of one or more of the foregoing sub-clauses. Explanation 1. - For the purposes of this clause, two bodies corporate shall be deemed to be under the same management,- (i) if one such body corporate exercises contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to act in accordance with the directions or instructions of one or more of the directors of the other, or if the directors of both the bodies corporate are accustomed to act in accordance with the directions or instructions of an individual, whether belonging to a group or not. Explanation II.- If a group exercises control over a body corporate, that body corporate and every other body corporate, which is a constituent of, or controlled by, the group shall be deemed to be under the same management. Explanation III.- If two or more bodies corporate under the same management hold, in the aggregate, not less than one-fourth equity share capital in any other body corporate, such other body corporate shall be deemed to be under the same management as the first mentioned bodies corporate. Explanation IV - In determining whether or not two or more bodies corporate are under the same management, the shares held by financial institutions in such bodies corporate shall not be taken into account. Illustration Undertaking B is inter-connected with undertaking A and undertaking C is inter-connected with undertaking ..... X X X X Extracts X X X X X X X X Extracts X X X X
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