2018 (10) TMI 636

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.... falling under Chapter 76 of Central Excise Tariff Act, 1985. The appellants were clearing goods to various buyers including to one M/s. Tubas Wire and Conductors Pvt. Limited (M/s. Tubas for short). He pointed out that Revenue issued show cause notice alleging that the said M/s. Tubas are related person. The Revenue's allegation is based on the assertion that the whole capital of M/s. Tubes was contributed by the family members of Shri Kapil Dabharia and that he is also the proprietor of M/s. K.R. Metals. The show cause notice examines Rule 9, 10 and 11 of Central Excise (Valuation Determination of Price of Excisable Goods) Rules, 2000. Finally the show cause notice, in terms of Rule 11 of the said Rules, adopting the best judgment determi....

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....e adopted then the same should have been adopted for the independent buyers purchasing the similar quantities of goods from the appellant. He pointed out that quantity discount is a recognized trade practice and is eligible discount under the Central Excise. He argued that difference in price can be attributable to the quantity purchased by M/s. Tubas. He relied on the decision in the case of SACI Allied Products Limited vs. CCE - 2005 (183) ELT 225 (SC) to assert that even in the case of related person, the price offered to similar class of wires can be taken as comparable price. 4. Ld. AR for the Revenue relied on the impugned order. He argued that, from the fact that the appellant and M/s. Tubas are related and are family members and ....

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....ods to M/s. Tubas Wire and Conductors Pvt. Limited, Daman should be according to clause (b) of sub Section 1 of Section 4 of Central Excise Act, 1944 read with Rule 9 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. The meaning of term "relative" has been defined under Section 6 of the Companies Act, 1956. According to which "a person shall be deemed to be a relative of other if, and only if :- (a) they are member of a Hindu undivided family; or (b) they are husband or wife; or (c) the one is related to the other in the manner indicated in schedule 1A. Further, it appears that the relationship between M/s. K.R. Metals and M/s. Tubas Wire and Conductors Pvt. Limited, Dam....