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TMI Blog2020 (3) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... e is no discussion how the buyers are related persons. As per Rule 10 (a) of the Valuation Rules only if the buyers and seller are related in the manner specified under the sub-clause (ii), (iii), (iv) of Clause-(b) of Sub-section (3) of Section 4 of the Central Excise Act, 1944, the valuation as alleged in the SCNs will come into application. In the present case, apart from the units being inter-connected undertakings there is nothing to show that the buyers and seller are related persons. There is no mutuality of interest or fund flow brought out by evidence on the part of the department. Demand do not sustain - appeal allowed - decided in favor of appellant. - Excise Appeal Nos. 41208 and 41209/2013 - Final Order No.40104-40105/2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buyers to whom the supplies were made by the appellant are distinct legal entities under the eye of law and not related persons for the purpose of valuation. Though the buyers can be treated as inter-connected, they are not related persons as regards the appellant. The appellant has rightly adopted transaction value and the demand made cannot sustain. During the same period the appellant also removed goods to other parties at the same value and the copy of invoices were submitted before the adjudicating authority. Ld. Counsel relied upon the appellant-assessee s own case in Final Order No.40316-40318/2018 dated 01.02.2018, for a different period and argued that the Tribunal after considering the facts of the case has set aside the demand r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate manages the other body corporate; or (II) if one body corporate is a subsidiary of the other body corporate; Or (III) if the bodies corporate are under the same management; or IV) if one body corporate exercises control over the other body corporate in any other manner; (D) where one undertaking is owned by a body corporate and the other is owned by a 'firm, if one or more partners of the firm,- (I) hold, directly or indirectly, not less than fifty per cent. of the shares, whether preference or equity, of the body corporate; or (II) exercise control, directly or indirectly, whether as director or otherwise, over the body corporate; (E) if one is owned by a body corporate and the other is owned by a firm having bodies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are partnership firms with partners who are close family members having blood relationship among each other as well as partners of the respondent firm. These four buyers and the respondent firm are interconnected is not disputed. However, two of the buyers were private limited companies. As juristic person they cannot be held to be relative of the respondent firm . Other than this, the original authority did not examine as to the category in which these two private limited companies can be considered as interconnected to the respondent firm. The overreaching control, mutuality of interest, financial control by way of share holding pattern etc., has never been discussed. In fact, relatives of the responded firm being Directors of the two ..... X X X X Extracts X X X X X X X X Extracts X X X X
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