TaxTMI 
TaxTMI 
2009 (3) TMI 729
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....Rules and not on the basis of export price of M/s. Mohanlal Mahavirchand. The learned Advocate, Shri Paresh Dave, submits that in this case the job worker (the appellant) and M/s. Mohanlal Mahavirchand are related persons and the decisions of the Hon' ble Supreme Court in the case of Ujagar Prints v. Union of India reported in 1989 (39) E.L.T. 493 (S.C.) and Pawan Biscuits Co. Pvt. Ltd. reported in 2000 (120) E.L.T. 24 (S.C.) are not applicable to the facts of the case. In this case appellants had not acted as an independent job worker but had processed grey fabrics received from a related merchant. Similarly, the Commissioner (Appeals) was not correct in holding that the ratio of decisions of the Tribunal in the case of Tata Industries Ltd....
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....a very peculiar case. Invariably, we find appellants claiming that the purchaser is not a related person and therefore price charged to him should be accepted. In this case the appellants claim that the buyer is a related person and therefore the price charged by him should be taken into account for the purpose of Section 4 of Central Excise Act, 1944. This is because the appellants are eligible for deemed credit on the basis of value of the goods and the deemed credit has nothing to do with the cost of raw materials. However, it has to be accepted that this should not be a consideration for deciding the case in hand but has been mentioned only for the purpose of academic interest. 4. The Commissioner (Appeals) has discussed this aspe....
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....bsp; where the undertakings are owned by bodies corporate, - (a) .... (b) .... (c) .... (d) . . .. (e) .... (iv) where one undertaking is owned by a body corporate and the other is owned by a firm, if one or more partners of the firm,- (a) hold directly or indirectly not less than fifty per cent of the shares, whether preference or equity, of the body corporate; or (b) exercise control, diredtly, or indirectly, whether as director or otherwise, over the body corporate. (v) one is owned by a body corporate and the other is owned by a firm having bodies corporate as its partners, if such bodi....
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....an assessee except to or through a person who is related in the manner specified in either of sub-clauses (ii), (iii) or (iv) of clause (b) of sub-section (3) of section 4 of the Act, the value of the goods shall be the normal transaction value at which these are sold by the related person at the time of removal, to buyers (not being related person); or where such goods are not sold to such buyers, to buyers (being related person), who sells such goods in retail : Provided that in case where the related person does not sell the goods but uses or consumes such goods in production or manufacture of articles, the value shall be determined in the manner specified in rule 8. 9. From the language of aforesaid Rules 9 and 10 of Central Exci....
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....lready included in the job charges) plus the cost of the materials used in the manufacture of the item (including the cost of the materials supplied free of cost to the job worker). It further states that the assessable value in such cases will not include the profit or the expenses (like advertisement and publicity, overheads, etc), incurred by the buyer (or the supplier of the raw material), where the dealing between the two are on principal to principal basis. The Circular No. 619/10/2002-CX., dated 19-2-2002 clarified that under the new valuation provisions, introduced with effect from 1-7-2000, there is no departure from the principles laid down by the Apex court in the above two decisions, in respect of goods manufactured on job work ....