2010 (5) TMI 231

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....Advocates, for the Appellant. Shri J.S. Negi, SDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. - The prayer in the application is to dispense with the condition of pre-deposit of service tax of Rs. 3,71,72,276/- confirmed against the appellant along with imposition of penalty of identical amount under the provisions of Section 78 of Finance Act, 1994. In addition, penalty o....

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....s under the category of Central Excise invoice, wherein the duty was paid on the value, which the appellant was charging from his customer, in terms of the provisions of Rule 9 of the Central Excise Valuation Rules, 2000. However, M/s. Welcast Steel Ltd. raised the commercial invoice against the appellant, wherein the price shown was less than the price at which the goods were sold to their custom....

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..... The intermediary AIA claims to be a buyer of goods from WSL and seller to ACC. In the records of Central Sales Tax authorities, it is showing that the sale made by WSL to AIA is an interstate sale and the sale made by the AIA to ACC is also an interstate sale made during movement of goods from AIA to ACC in terms of Section 6 of the Central Sales Tax Act. It is clear that there is no movement of....

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....uring the movement of goods is shown on paper to create a camouflage of interstate sale when no such movement takes place. This is done, not for a single transaction, but for numerous transactions over a period of time without entering into a written contract. This shows a perfect understanding between the parties involved, as it should be between a holding and a subsidiary company. The entire tra....