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of <h1>Supreme Court remands case on related party transactions for fresh adjudication</h1> <h3>M/s. Special Prints Ltd., M/s. Garden Silk Mills, Shri B.J. Modi, Shri S.J. Modi Versus CCE Surat</h3> The Supreme Court remanded the case involving M/s. Special Prints Ltd. and M/s. Garden Silk Mills Ltd. to the Commissioner for fresh adjudication due to ... - Issues involved: Valuation of goods, related person relationship, remand to Commissioner for fresh adjudication.Valuation of goods: The case involved M/s. Special Prints Ltd. (SPL) engaged in processing fabrics and trading yarn, and M/s. Garden Silk Mills Ltd. (GSML) in a related person relationship. The department proposed to determine the assessable value of processed fabrics based on GSML's sale price to dealers. Similarly, for texturised yarn cleared by GSML, the value was to be determined based on the method prescribed by the Supreme Court. The Tribunal initially ruled in favor of SPL, but the Supreme Court remanded the matter to the Commissioner for fresh adjudication due to the related person relationship between the companies.Related person relationship: The Commissioner concluded that SPL and GSML were related persons, but certain issues raised by SPL were not thoroughly discussed. SPL argued that the valuation of goods sold to a related person should be based on the value at which the related person sells the goods only when the assessee arranges that the goods are sold only to or through the related person. The Commissioner's decision did not delve into this aspect in detail, necessitating a fresh consideration. Additionally, the issue of limitation was not adequately addressed by the Commissioner, requiring further examination.Remand to Commissioner: Considering the factual aspects and decisions of the Tribunal and the Supreme Court, the Tribunal deemed it appropriate to remand all appeals to the Commissioner for a fresh decision. The matter was to be adjudicated by one authority to ensure comprehensive consideration of all issues. The appellants were to be given an opportunity to present their case during the fresh adjudication, and the Tribunal clarified that it was not expressing an opinion on any issue.
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