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TMI Blog2017 (8) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... ted undertakings and related persons under Section 4 of Central Excise Act, 1944. During the impugned period products namely LDO, Bitumen, LSHS, LPG, SKO and Lube Oil were sold only to IOCL. In respect of these products, excise duty was paid at the price at which the IOCL sold the goods, (being related person) in terms of Rule 10 read with Rule 9 of Central Excise Valuation Rules. Motor Spirit, High Speed Diesel, Furnace Oil, Naphtha, ATF were sold to both the Holding Company (IOCL) as well as other OMCs viz. HPCL & BPCL who are independent and separate PSUs and are unrelated buyers. The OMCs in turn sell the products to their dealers. Excise duty in respect of these products is paid at the Refinery Transfer Price (RTP). The dispute is with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be adopted through Rule 11. This position is confirmed by CBEC Circular No.643/34/2002-CX dated 1.7.2002. The Commissioner ought to have followed the clarificatory circular issued by the Board. The facts and circumstances of Aqua Mall Water Solutions case are entirely different from the case on hand. HPCL Case relied in the Order in Original did not deal with sale to Inter-Connected Undertakings. The Commissioner ought to have confirmed the entire demand in the Show Cause Notices along with penalty and interest. 4. With the above background, we heard Shri A. Cletus, ADC, Ld. D.R as well as Shri R. Parthasarathy, Advocate. 5. Ld. D.R reiterated the grounds of appeal. 6. Ld. counsel for the respondent submitted that the grounds of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty already paid on the basis of Refinery Transfer Price. We note that the sales made by CPCL are not exclusively to the related person i.e. IOCL. The sales made to HPCL as well as BPCL cannot be considered as sales to related persons. They are independent and separate PSUs who are unrelated buyers. The valuation of such goods has been decided by the Hon'ble Supreme Court in the case of Aquamall Water Solutions (supra) wherein the Apex Court upheld the Tribunal's order which held that when goods are not exclusively sold to principal holding company, Rule 9 & 10 of Central Excise (Valuation) Rules, 2000 cannot be invoked and the prices of goods sold by the principal holding company to their dealer should not be adopted as transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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