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TMI Blog2018 (7) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... applicability of Rule 10. The Rule 10 will be applicable only in those cases where 100% of the goods are sold through related persons - There is no justification for insistance on payment of duty at the price at which the goods are sold by the related persons It is the submission of the appellant that the mutually agreed price at which goods are sold to the related persons is at par with the price of such goods sold to independent buyers. We also note that related details also have been submitted before the Adjudicating Authority. But we find from the impugned order that this aspect has not been discussed by him - the Adjudicating Authority is directed to consider this submission made by the appellant and accept the mutually agreed pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. With this background we heard both sides and perused the appeal record. 4. It is the submission of the ld. Advocate for the appellant that the goods sold through the subsidiary comprise only very small percentage of the total goods sold by the appellant. Since bulk of the goods are sold to independent buyers, such price is available and the mutually agreed price at which duty was paid at the time of clearance to the subsidiary has also been arrived at on the basis of such independent price. He submitted that the provisions of Rule 10 of the Central Excise Valuation Rules, 2000 will not be applicable to the present case, since 100% of the goods manufactured are not being cleared to and through the subsidiary. He also relied on vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endent buyers? There is no specific rule covering such a contingency. Transaction value in respect of sales to unrelated buyers cannot be adopted for sales to related buyers since as per Section 4(1) transaction value is to be determined for each removal. For sales to unrelated buyers valuation will be done as per Section 4(1)(a) and for sale of the same goods to related buyers recourse will have to be taken to the residuary Rule 11 read with Rule 9 (or 10). Rule 9 cannot be applied in such cases directly since it covers only those cases where all the sales are to related buyers only. 7. From the above clarification it is evident that when goods are partly sold to related persons and partly to independent buy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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