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TMI Blog2024 (1) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... aluation Rules, 2000 - Circular No. 643/34/2002- CX dated 01.07.2002 - HELD THAT:- The show cause notice has not specifically alleged that under which category appellant and their buyer are related for purpose of valuation under Section 4 of the Central Excise Act, 1944. For this reason itself the entire proceeding is ab initio illegal and not sustainable. Moreover, the appellant is a public limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng No. 7408.19, 7409.10 and 8544.90 respectively. During the course of auditing the records of the assessee by the Central Excise Audit Officer, under EA 2000 audit, it was noticed that there are nine entities over which key management personnel and their relatives are able to exercise significant influence. Whereas, it further appears that of these nine entities the assessee has made purchase a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 9 of Central Excise Valuation Rules, 2000. The revenue also referred to Circular No. 643/34/2002- CX dated 01.07.2002 regarding valuation of goods at 110% / 115% of the cost of production of the goods in case goods is consumed captively. Therefore, a show cause notice was issued whereby the demand of central excise duty of Rs. 16,61,095/- was proposed to be demanded along with interest and impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Merely because both the companies belong to a group of companies it does not mean that the appellant and buyers are related persons. Therefore, there is no basis in confirmation of demand. He placed reliance in the decision of this Tribunal in the case of Mother Dairy Vs. Commissioner of Central Excise, Ahmedabad- I - 2023 (383) ELT 330 (Tri. Ahmd) 3. Shri P. Ganesan, Learned Superintendent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant directly supports their case, therefore, we do not find any substance in the entire proceeding of the Revenue. Hence, the payment of duty made by the appellant on the transaction value is absolutely correct and legal. 5. Accordingly, we set aside the impugned order and allow the appeal with consequential relief, if any, in accordance with law. ( Pronounced in the open court on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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