TaxTMI 
TaxTMI 
TaxTMI 
2020 (1) TMI 893
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.... Cause Notices dated 25.02.2005 and 01.08.2005 were issued on various grounds which came to be adjudicated vide impugned Order-in-Original dated 22.12.2005. That for an earlier period, the Show Cause Notices were adjudicated vide Order-in-Original No. 36/2005 dated 20.04.2006, against which the assessee preferred an appeal before the CESTAT in Appeal No. E/846/2006, E/848-A/2006, E/109/2007 and E/144/2007; that the Department had also preferred appeal in Appeal No. E/254/2007 against the same. This Bench vide Final Order Nos. A/30612-30616/2016 dated 26.07.2016 disposed of the same, as indicated in the said order. 2.2 Against one of the above orders of the Tribunal i.e., Appeal No. E/109/2007, the Revenue preferred an appeal before the Ho....
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....eared, was in the special knowledge of the management of the unit which is a closely held private limited company. 4.2 It was also contended that both the units were closely managed by the Management of M/s. Sri Vasavi Polymers which was having control of the accounts of the marketing firm and taking decisions on behalf of the firm and the dealings between the two units was not at arm's length; that therefore, the assessable value of the goods was to be determined in terms of Section 4 (1) (b) of the Central Excise Act, 1944 as also for the reason that the two units were inter-connected undertakings within the meaning of Section 2 (g) of the Monopolies and Restrictive Trade Practices Act (hereinafter referred to as the 'MRTP Act'). 5. P....
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....akings are owned by firms, if such firms have one or more common partners, [(iii) where the undertakings are owned by bodies corporate,- (a) if one body corporate manages the other body corporate, (b) if one body corporate is subsidiary of the other body corporate, or (c) if the bodies corporate are under the same management, or (d) if one body corporate exercises control over the other body corporate in any other manner;] (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, directly or ind....
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.... note that the Ld. Commissioner has analysed the applicability of Section 2 (g) ibid whereby it has been inter alia held that the Show Cause Notice proceeded on the basis that M/s. Vasavi Agencies was the sole selling distributor; that the relevant clause was (iv) of Section 2 (g); that if at all, applied since M/s. Sri Vasavi Polymers is a body corporate and M/s. Vasavi Agencies is a partnership firm; that therefore one or more partners of the firm should hold, directly or indirectly, not less than 50% of the share of the body corporate or exercise control directly or indirectly, etc. The Ld. Commissioner has also extracted the percentage of share capital in his order in tabular form and has proceeded to analyse the requirement of the Sect....
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....ssessee and the same is clearly hit by the provisions contained in Section 4 (3) (b) of the Central Excise Act read with Rule 10 of the Central Excise Valuation Rules, 2000. 9. Rule 10 ibid requires that the entire sales should be made through the related person whereas, in the case on hand, the Revenue has not been able to dislodge the findings of the Adjudicating Authority that the sales through M/s. Vasavi Agencies could constitute only 25% to 30% of the total sales as also the fact that the assessee was effecting sales at the factory gate to other buyers as well. We also find that the Adjudicating Authority has placed on record, as "verified from the records that the sales through or to M/s. Vasavi Agencies constitute 25% to 30% (on v....