9911796707
TMI Blog2015 (8) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... ecessary for the appreciation of the present appeals are as follows: The appellant is a company whose shareholders are the Tamil Nadu Government - 17.61 per cent, SPIC - 16.93 per cent, and banks, financial institutions and the general public holding the balance of 65.46 per cent. The appellant, inter alia, manufactured Epichlorohydrin (hereinafter referred to as 'ECH') which is a chemical used in the manufacture of Epoxy Resins. The international price of ECH was stated to be very low compared to the high cost of production in India and therefore, on a representation made by the appellant, the Central Government had imposed an import duty on ECH so as to make the appellant, the manufacturer of ECH, viable. This duty was, however, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into. It is not necessary for the present appeals to go into details of any of these agreements inasmuch as there are detailed findings of fact both by the Deputy Commissioner in his Order-in-Original dated 30.07.2003 and by the Commissioner in his Order-in-Original dated 13.07.2004 who have considered these agreements in great detail and ultimately arrived at a conclusion that though there is no interconnection within the definition of "related person" as it stood at the relevant time, there is mutuality of interest in that the purchaser, M/s.PAPL, could be said, thanks to several factors, to have an indirect interest in the business of the appellant and vice versa. These findings of fact have been confirmed ultimately by the Customs, Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e price contained in another chart is compared with the cost of production, it is clear that even the sales made to arm's length purchasers is at prices ranging between Rs. 69,000/- and Rs. 85,000/- which is way below cost at Rs. 1,57,548/-. While agreeing with the CESTAT that none of the Central Excise (Valuation) Rules would be directly applicable as a result of which Rule 11 would have to be relied upon - which gives the authority the power to make a best judgment assessment - we find that on facts in the present case, the cost of manufacture plus 15 per cent principle would not be attracted for the simple reason that it is found that in point of fact, sales made to arm's length purchasers were way below cost. A best judgment ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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