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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 ..... icable in certain conditions of relationship, and rule 10 which is applicable circumstances in which the relationship between the buyer and the seller is solely between the interconnected undertakings. The finding that the two not being ‘interconnected’ with consequent exclusion from liability to duty under the Rules is legal and proper - appeal of Revenue dismissed. - Appeal No. E/1839/2010 - A/85239/2019 - Dated:- 24-1-2019 - Shri C J Mathew, Member (Technical) And Shri Dr. Suvendu Kumar Pati, Member (Judicial) Shri S. Hasija, Supdt (AR) for the appellant Shri Rajesh Ostwal, Advocate for the respondent ORDER Per: C J Mathew Revenue is in appeal against order-in-appeal no. SR/238-239/NGP/2010 dated 27th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found related by the department, there is no need for the Department to indulge in fishing enquiries so as to unearth the type or degree of interest in the transactions, as contended before us. The same thing applies to situations where the parties are inter-connected undertakings. xxx xxx 13. As per the existing provisions of law, as referred to in the foregoing paras (7 and 11), once it is established that the parties are related , the machinery provisions of Central Excise Valuation (DEPG) Rules, 2000 automatically get kick-started. In such an event, there is hardly any scope for searching for a Mandi Gobindgarh bazaar, which in our opinion, would be a bizarre exercise. The only dependable route is, therefore, to go by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvanced by the appellants appears to us to be a highly hypothetical concept, cut off from the ground-level realities. The appellants have not been able to demonstrate with facts and figures before the lower authorities (nor before us) as to how the theory can be made applicable to them. By sculpting the air, no Eiffel Tower could be created. Yet, the wondrous human mind revels in such fantasies! Otherwise, Rumsfeld would not have made the following remarks: There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don t know. But there are also unknown unknowns. These are things we don t know we don t know. 3. Learned Counsel for the respondent submits t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of the other. The context of such a commercial relationship cannot be said to meet with the qualification of having an interest in the business of each other. The finding in the order impugned before the Tribunal in re Sudarshan Casting Pvt Ltd proceeds on the basic fact that the companies concerned therein are related for the purposes of the applicability of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. In the present instance, the definition of related person, though including interconnected undertaking, as found by the appellate authority is not admitted and certainly does not extend to the valuation provision invoked in the show cause notice. The reviewing authority appears to have omitted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Commissioner have not brought any material to establish that the relationship between appellant and buyers company are one of the relationship as prescribed under sub-clause (ii), (iii) or (iv) of Section 4(3)(b) of Central Excise Act therefore in our considered view even if it is accepted that the buyers company are interconnected undertaking of the appellant company it cannot be treated as related person in terms of Section 4(3)(b) in absence of relationship as specified under sub-clause (ii), (iii) or (iv) of Section 4(3)(b). In this position, the transaction value of the goods between appellant and these three interconnected undertakings is correct valuation and the same cannot be disturbed, therefore value as provided under Rule 8 is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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