Purposive interpretation of residential house exemption: unregistered purchase agreement alone does not defeat relief, but investment must be verified...
CESTAT ruled that merely listing an inter-connected undertaking in Income Tax Form 3CD does not establish a "related person" relationship under Central Excise law. Without specific determination that the appellant and M/s Shree Vaishnav Ispat Private Limited were related under Section 4(3) of the Central Excise Act, 1944, they cannot be treated as related parties for valuation purposes. The Tribunal cited precedents establishing that inter-connected undertakings are not automatically related persons, and valuation should be determined under Rule 10 rather than Rules 8 & 9 of the Central Excise Valuation Rules, 2000. The impugned order was set aside and the appeal allowed.
CESTAT ruled that merely listing an inter-connected undertaking in Income Tax Form 3CD does not establish a "related person" relationship under Central Excise law. Without specific determination that the appellant and M/s Shree Vaishnav Ispat Private Limited were related under Section 4(3) of the Central Excise Act, 1944, they cannot be treated as related parties for valuation purposes. The Tribunal cited precedents establishing that inter-connected undertakings are not automatically related persons, and valuation should be determined under Rule 10 rather than Rules 8 & 9 of the Central Excise Valuation Rules, 2000. The impugned order was set aside and the appeal allowed.
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