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TMI Blog2018 (4) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the two companies are ‘related persons’ in terms of sub-clause (ii), (iii) or (iv) of Section 4(3) (b) of the Act. Valuation of goods as per Rule 9 read with Rule 8 of the Central Excise Valuation Rules, is applicable only in a case where goods are sold to or through a person who is related. Rule 10 of the Valuation Rules deals with the valuation of goods sold to or through “inter-connected undertaking”. Since the two companies are not related in terms of sub-clause (ii), (iii) or (iv) of Section 4(3)(b) of the Act, the valuation is required to be done in terms of Rule 10 (b) of the Rules which provides the valuation to be done as if they are not related persons. Appeal allowed - decided in favor of appellant. - Appeal No. E/5014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present appeal has been filed. 2. With the above background, we heard S/Shri S.C. Jain and Rajat Doshi, ld Advocates for the appellant as well as Shri M.R. Sharma, AR for the Revenue. 3. The case of the appellant was argued as follows: i) For the appellant to be considered as a related person with M/s Maruti Suzuki India Ltd, in terms of Section 4(3) (b) of the Act, they should be so associated that they have interest directly or directly in the business of each other. In the present case, M/s Maruti Suzuki India Ltd is holding 39% share in the appellant s company, but the appellant does not own any shares in M/s Maruti Suzuki India Ltd. Consequently, the appellant does not satisfy the definition of related person . Hence, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. 6. The dispute in the present case is regarding the valuation of automobile parts cleared by the appellant to M/s Maruti Suzuki India Ltd, who were holding shares to the extent of 39% in the appellant s company. The stand of the Revenue is that the two are related persons as per Section 4(3) (d) of the Act. The said sub-section is re-produced below for ready reference: (3) For the purposes of this section:- (a) (b) Persons shall be deemed to be related if- (i) they are inter-connected undertakings; (ii) they are relatives; (iii) amongst them the buyer is a relative and distributor of the assessee, or a sub-distributor of such distributor; or (iv) they are so associate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above manner. 8. Rule 10 of the Valuation Rules deals with the valuation of goods sold to or through inter-connected undertaking . Since the two companies are not related in terms of sub-clause (ii), (iii) or (iv) of Section 4(3)(b) of the Act, the valuation is required to be done in terms of Rule 10 (b) of the Rules which provides the valuation to be done as if they are not related persons. In such cases, valuation as per transaction value arrived on the basis of purely commercial consideration is to be accepted. These views have been consistently held by the Tribunal in various case laws. In the case of Commissioner CE Vs M/s Oriental Steel Re-Rolling Mills-2014-TIOL-202-Cestat, Delhi, this Tribunal observed: 6. We find that who ..... X X X X Extracts X X X X X X X X Extracts X X X X
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