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TMI Blog2015 (5) TMI 979X X X X Extracts X X X X X X X X Extracts X X X X ..... lants were supplying to independent suppliers also and as required under Rule it could not be said that appellants were not selling their product except or through an interconnected undertaking or a related person, the price at which goods are sold to RAK, Mumbai, cannot be rejected in terms of Rule10(b) of Valuation Rules. Therefore he came to the conclusion that in the absence of any evidence to show that RAK Mumbai was a related person, when there were independent sales to other buyers, as per provisions of Rule 10(b), the sales to RAK, Mumbai has to be considered as a sale to an unrelated person. In the appeal memorandum as well as the submissions of learned AR, what is being stated is that this order is not correct and the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 4. Revenue is in appeal against this decision. 3. Heard the learned AR and the learned counsel for the respondents. 4. There is no dispute that the ceramic tiles and sanitary ware supplied by the respondents to M/s. Ras Al Khaimah Ceramics India Pvt. Ltd., Mumbai (RAK, Mumbai) and that in the balance sheet of the respondent M/s. RAK, Mumbai has been shown as an associate company. The respondents submitted that respondent is a wholly owned subsidiary of M/s. RAK Ceramics, PSC, UAE which also hold 60% shareholding interest in RAK Mumbai. The Commissioner (A) in the impugned order has considered the provisions of law such as Section 4(3)(b), Rule 10 of Valuation Rules, the Circular issued by CBEC F.No.354/81/2000-TRU dated 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctly, in the business of each other. 4.2 CBEC in their Circular dated 30.6.2000 had clarified that if clauses (ii),(iii) (iv) do not exist in transactions between interconnected undertakings, then for assessment purposes, they will not be considered as related. 4.3 In such a situation, Rule 10(b) would come into play. Rule 10 of Central Excise (Valuation) Rules, 2000 reads as under: Rule 10 : When the assessee so arranges that the excisable goods are not sold by him except to or through an interconnected undertaking, the value of goods shall be determined in the following manner, namely;- (a) If the undertakings are so connected that they are aslo realted in temrs of sub-calsue 9ii) or (iii) or (iv) of clause (b) of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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