https://www.taxtmi.com/caselaws?id=380991 Classification of covered yarn was determined from the tariff section notes, chapter notes and HSN notes, and the product was treated as metallized yarn under heading 5605.10 with exemption under Notification No. 45/86-C.E. upheld. Duty was sustained only for the proved unaccounted removal of 1,776.75 kg of covered yarn. The undervaluation allegation based on the buyer's higher resale price failed because related-person status, mutuality of interest and flow back of consideration were not established. Reversal of credit on metallized polyester film was also rejected because the demand went beyond the show cause notice. Penalties and redemption fine were reduced, and the personal penalty was set aside. en-us Fri, 31 May 2019 00:00:00 +0530 Mon, 24 Feb 2020 18:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=380991 Classification of covered yarn was determined from the tariff section notes, chapter notes and HSN notes, and the product was treated as metallized yarn under heading 5605.10 with exemption under Notification No. 45/86-C.E. upheld. Duty was sustained only for the proved unaccounted removal of 1,776.75 kg of covered yarn. The undervaluation allegation based on the buyer's higher resale price failed because related-person status, mutuality of interest and flow back of consideration were not established. Reversal of credit on metallized polyester film was also rejected because the demand went beyond the show cause notice. Penalties and redemption fine were reduced, and the personal penalty was set aside. Case-Laws Central Excise Fri, 31 May 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=380991