2008 (7) TMI 743

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....ts. 2. The dispute relates to valuation of the goods manufactured by M/s Him Teknoforge Ltd. and sold by them to M/s Him Gears (P) Ltd. It was the Revenue's case in the show cause notice dated 31-7-06 that M/s Him Gears (P) Ltd. are related persons to M/s Teknoforge Ltd. As such, the value of the goods sold by them to M/s Him Gears (P) Ltd. should be on the basis of the selling price of Him Gears (P) Ltd. The original adjudicating authority confirmed the demand and imposed penalty which was set aside by the Commissioner (Appeals) vide his impugned order. 3. There is a clear finding by the appellate authority that the entire goods are not being sold by the respondents to M/s Him Gears (P) Ltd. and there is sufficient sales to....

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.... 1956 under E-1 form. The transit sales are permitted legally under CST Act, 1956 and as such, nothing adverse can be noticed from such transactions. The appellant and HIM having been held to be not 'related persons', the sales made by the dealers of HIM no longer remain as the wholesales but are retail sales. In this case, the demand of duty has been worked out by taking out the prices charged by dealers of HIM as the wholesale prices which is not correct in view of the above position. In any case, if the prices charged by the dealers of HIM are to be taken for assessment purpose then those have to be first converted from the retail price to the wholesale price since the assessment under Section 4 is on wholesale price. There are a number ....