2016 (1) TMI 193

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....Mills Ltd. and other companies of Oswal group was subject matter of dispute in view of the contention of the Revenue that these are related party transactions. The proceedings initiated by the Department resulted in order in Original dated 18.07.2005. It was held by the original authority that the appellants short paid the Central Excise duty as they have not taken 115% of cost of production in respect of goods sold to related persons. The duty demand was confirmed along with equal penalty. On appeal, the Ld. Commissioner (A) vide order dated 28.02.2006 upheld the original order. Aggrieved by the said order the appellant is before us. 3. In the appeal the appellant took strong objection to the proceedings of the lower authority as being ....

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....ompany is related and controlled by M/s. Oswal Woolen Mills Ltd. Thereafter, the original authority again mentions about the appellant's defense of their identity under Companies Act and how their relationship between Directors of two companies will have no impact on valuation. The declaration made to income tax has no relevance for Central Excise valuation. However, we find after reproducing the appellant's defense as above the original authority concludes that " in view of the foregoing paras reply filed by the notice, I have observed that the noticee has cleared the goods to M/s. Nahar spinning mills, M/s. Oswal Woolen Mills Ltd., M/s. Rishabh Spinning Mills which are controlled by the family members of Jawahar Lal CMD of M/s. Os....