https://www.taxtmi.com/caselaws?id=2235 Related-person valuation requires proof that mutuality of interest influenced the transaction price. Common directors alone did not establish that condition where the manufacturer also sold directly to other buyers at comparable prices and differences were attributable to transportation and handling charges; related-person valuation was therefore unjustified. Clandestine removal cannot rest solely on a discrepancy between production schedules and RG-1 entries; corroborative evidence of unrecorded manufacture or clearance is required, and the alleged removal was not proved. Consequently, the valuation-based duty demand, penalties and interest could not survive, with part of the demand also time-barred. The departmental challenge to the earlier favourable order failed. en-us Fri, 08 Jun 2007 00:00:00 +0530 Tue, 15 Apr 2008 16:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2235 Related-person valuation requires proof that mutuality of interest influenced the transaction price. Common directors alone did not establish that condition where the manufacturer also sold directly to other buyers at comparable prices and differences were attributable to transportation and handling charges; related-person valuation was therefore unjustified. Clandestine removal cannot rest solely on a discrepancy between production schedules and RG-1 entries; corroborative evidence of unrecorded manufacture or clearance is required, and the alleged removal was not proved. Consequently, the valuation-based duty demand, penalties and interest could not survive, with part of the demand also time-barred. The departmental challenge to the earlier favourable order failed. Case-Laws Central Excise Fri, 08 Jun 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2235