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The article argues that a proprietary concern cannot be treated...
Transaction value and connected person treatment in excise valuation: proprietary concerns not inter connected undertakings, relief on valuation and classification follows
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The article argues that a proprietary concern cannot be treated as an inter-connected undertaking with a partnership firm or body corporate; the concept of inter-connected undertakings applies to body corporates and requires specific legal nexus, not mere mutuality of interest. Applying that principle, the finding of relatedness between the manufacturer and its buyers is unsustainable, so invocation of transfer pricing rules for transaction value adjustment is unjustified. Classification of the goods as machinery under CETH 8471 is supported and the alternate classification is rejected. Alleged short payment for March 2017 is negated and extended limitation for demand is inapplicable on the facts.
The article argues that a proprietary concern cannot be treated as an inter-connected undertaking with a partnership firm or body corporate; the concept of inter-connected undertakings applies to body corporates and requires specific legal nexus, not mere mutuality of interest. Applying that principle, the finding of relatedness between the manufacturer and its buyers is unsustainable, so invocation of transfer pricing rules for transaction value adjustment is unjustified. Classification of the goods as machinery under CETH 8471 is supported and the alternate classification is rejected. Alleged short payment for March 2017 is negated and extended limitation for demand is inapplicable on the facts.
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