2002 (7) TMI 713

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....ter referred to as the applicant) are holding Central Excise Registration number 67/Amt/94 for manufacture of M.S. Wires. M/s Bajaj Steel Co., Amravati, is engaged in the trading of iron, hardware and general supplies and is a proprietary concern owned by Shri G.K. Bajaj. M/s. Bajaj Steel Co., Amravati procures M.S. Wires, M.S. Wire rods for trading purpose from the applicant. Search of the premises and the godowns owned by Shri G.K. Bajaj was carried out by the Officers of C.I.U and Preventive Branch, C.Ex., Headquarters, Nagpur and records relating to the said firms were seized. 3. From the certificate issued by the Sales Tax Department, Government of Maharashtra dated 28-9-1999, it is revealed that both manufacturing and trading co....

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....arily sold by the related person in the course of wholesale trade at the time of removal to dealers. Further as per the provisions of Section 4 (sub-section 4) with effect from 1-7-2000, related person means a person who is so associated with the assessee that they have interest, directly or indirectly, in the business of each other and includes a relative of the assessee. As such, the applicant should have paid Central excise duty on the value at which M/s. Bajaj Steel Co. sold the goods. 7. A demand notice C. No. V (72) 15-223/2001/Adj./12777, dated 3-7-2001 has been issued to the applicant by Superintendent, CIU, Central Excise, Hqrs., Nagpur for recovery of differential Central Excise duty of Rs. 2,05,914/- on the differential val....

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....vered by the show cause notice dated 4-7-2001 and the same has been paid. He further submitted that the applicant may be granted immunity from interest, fine, penalty, etc. The Revenue was not present. 15. The Commission has gone through the records of the case and the submission of the applicant. 16. The Commission vide its Interim Order No. 26/SC/CE/2002, dated 10th April, 2002 allowed the application to be proceeded with under sub-section (1) of Section 32F of the Central Excise Act, 1944. The Commission observed that the Show Cause Notice No. V (72) 15-223/2001/ Adj./12777, dated 4-7-2001 demanded a differential duty amounting to Rs. 2,05,914/- in respect of under-valuation committed by the applicant. The applicant without ....