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TMI Blog2008 (2) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... h Kodianthara, learned Advocate, for the appellants Shri K. Sambi Reddy, JDR, for the Respondent. [Order Per Shri T. K. Jayaraman, Member (T)]-1. All these five appeals have been filed against Order-in-Original No. 2/2005 dated 29.04.2005 passed by the Commissioner of Central Excise Customs, Calicut. The details of the appellants and duty/penalty confirmed are given in the following tabular column. Tabular Column S.No. Appeal No. Appellant Respondent O/O O/A Duty/Penalty Remarks 1 E/716/05 M/s HykonElectronic Systems CCE, Calicut 02/2005 dt. 29.04.05 Rs.4,90,674/- Duty Rs.4,90,674/Penalty 2 E/717/05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods cleared by HEL and HPE. Consequently, duty has been demanded as indicated in the above tabular column. Equal penalty also has been imposed and in respect of Christo George, Catherine Christo and Smt. K.K Rosy penalties have been imposed as indicated above. The appellants strongly challenge the impugned order. Hence, they have come before this Tribunal for relief. 3. Shri Joseph Kodianthara, learned Advocate, appeared before us for personal hearing on behalf of the appellants and Shri K. Sambi Reddy, learned JDR, argued for the Revenue. 4. We heard both sides. The only issue before the Tribunal is the valuation of the goods cleared by HES and HPE to M/s. HMSPL which is a marketing firm. The learned Commissioner comes to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are three separate legal entities. He stated that the two manufacturing units undertake sales not only to the marketing firm but also independently to various other parties. That apart, he said that the marketing firm purchases not only from the two manufacturing units but also from others. He urged the point that there is no finding that the relation between the manufacturing firms and the marketing unit have influenced the price. We also brought to our notice that the marketing firm has imported similar items at far less rate also. All the products are not marketed under the brand name of "Hykon". Purchase price and sale price differ due to huge marketing expenses. There is no under valuation in purchase. He also brought to our notice th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsolutely no case for adopting the value of the marketing firm. 7. On a very careful consideration of the matter, we do not find that there is enough justification to hold that the two manufacturing firms and marketing firm can be considered as related person in terms of Section 4 as it stood prior to 1.7.2000. Instances of credit owed by the marketing firm to the manufacturing firms and also the fact that the marketing firm people were trained by the manufacturing firm cannot be the sole reasons for adopting the value at which the sale price of the marketing firm as assessable value. There will always be a difference in price between the price at which the marketing firm sells the goods and the price at which the manufacturing firm se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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