AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
2004 (9) TMI 685
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Anand, Adv. For Respondents: Bhagya Devi, SDR ORDER P.G. Chacko, 1. These appeals are against an order of the Commissioner of Central Excise confirming a demand of duty of over Rs. 1.8 crores against M/s. Hatsun Food Company (HFC, in short), imposing on them penalties under Section 11AC of the Central Excise Act and Rule 173 Q of the Central Excise Rules, 1944 and also imposing penalt....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... relevant show-cause was opposed by HFC, who took the view that, where factory gate sales to independent buyers were available, it was the price for such sales that would constitute 'normal price' for the purpose of assessment of the goods to duty of excise and that the price at which the major buyer, whether related or not, sold that goods to the ultimate customers was irrelevant. The sho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nding on them. The demand of duty requires to be set aside, following the decision of this Bench in the case of Hatsun Milk Food Ltd. (supra). Consequently, the penalties also require to be vacated. 3. Ld. SDR has endeavoured defend the order of the Commissioner by harping on the aspect of 'lifting the corporate veil". She has spoken of 'unity of interest' between HFC and HAPL. She ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e considered the submissions and the cited case law. We find that there is a clear parallel between this case and the case of Hatsun Milk Food. M/s Hatsun Milk Food Ltd. had sold their major production to a party who was considered by the department as "related" to the assessee, and the remaining goods were sold to buyers who were admittedly unrelated. In that case, it was also an admitted fact th....