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TMI Blog2019 (2) TMI 1478X X X X Extracts X X X X X X X X Extracts X X X X ..... ile adjudicating two show-cause notices by a common order, has been set aside. The respondent had been supplying 'steel ingots' to M/s. Orange City Alloys Pvt Ltd on payment of duty at transaction value which is claimed by the central excise authority to be below the cost of production and as the transaction was between the two related persons duty should have been discharged, under rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, on cost of production plus 10%. 2. Learned Authorised Representative places reliance on the decision of the Tribunal in Sudarshan Casting Pvt Ltd v. Commissioner of Central Excise, Jammu & Kashmir [2007 (217) ELT 428 (Tri-Del)] holding that '9. From the above, it emerge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 to 30-9-2004. Admittedly, periodical returns were being filed, therefore, the return for July, 2000 was required to be filed by 5-8-2000. Considering that to be the relevant date as per the definition reproduced in para 11 above, the show cause notice issued on 4- 8-2005 is well within the prescribed period of five years for the entire period covered thereunder. As regards the second show cause notice dated 15-9- 2005 which covered the period from 1-10-2004 to 31-8-2005, there is no such dispute. At this juncture, we cannot pussyfoot around the argument that had the exemption under of Notification No. 56/2002 been extended to the appellant Noticee 1, nothing would remain payable to the Revenue. This argument which appears to us very much ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of rule 8 will come into play only when, as per rule 10, the undertakings that are interconnected are also related in terms of sub-clause (ii) or (iii) or by clause (b) of sub-section (3) of section 4 of the Central Excise Act 1944. He contends that the applicability flounders on the absence of any interest, directly or indirectly, in the business of each other. 4. It is seen from the records that though neither company are connected to each other directly, common shareholding in both the companies may well render them as 'interconnected undertakings.' Though interconnection between undertakings is one of the criteria for determining related person, the provisions of rule 9 excludes applicability on this ground and rule 10, which is per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtakings. 6. We also find that the Tribunal, in Handy Wires Pvt Ltd v. Commissioner of Central Excise, Nagpur [2015 (329) ELT 169 (Tri-Mumbai)] has held that 'From the above clarification it was made clear that the transaction value can be rejected only when the buyers are related in the sense in clause (ii), (iii) or (iv) of Section 4(3)(b) or buyer is holding company or subsidiary company of the assessee. It was made further clear that while dealing with transaction between interconnected undertaking, if the relationship as described in clause (ii), (iii) or (iv) does not exist and buyers also not holding or subsidiary then for assessment purpose they will not be considered related. In view of above clear position as regard transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow it is settled law by the Larger Bench of this Tribunal in the case of Ispat Industries (supra) that if goods partly sold to the independent buyer and partly to the related person, valuation under Rule 8 shall not apply in the case of goods sold to related person but transaction value at which the goods are sold to independent buyers shall apply. For this proposition the Larger Bench has contended that first principle of valuation is the transaction value and only in the absence of transaction value, valuation rules should be made applicable. When for the same goods transaction value is available i.e. transaction value at which the goods are sold to independent buyers, then there is no scope of any notional value such as valuation in term ..... X X X X Extracts X X X X X X X X Extracts X X X X
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