2008 (2) TMI 186

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....the following tabular column. Tabular Column S.No. Appeal No. Appellant Respondent O/O &O/A Duty/Penalty Remarks 1 E/716/05 M/s HykonElectronic Systems CCE, Calicut 02/2005 dt. 29.04.05 Rs.4,90,674/- Duty Rs.4,90,674/Penalty   2 E/717/05 M/s HykonPower Electronic(P) Ltd. CCE, Calicut 02/2005 dt. 29.04.05 Rs.4,31,243/- Duty Rs.4,31,243/Penalty   3 E/718/05 M/s Christo George CCE, Calicut 02/2005 dt. 29.04.05 Rs.10,000/- Penalty   4 E/719/05 M/s CatherineChristo CCE, Calicut 02/2005 dt. 29.04.05 Rs.5000/- Penalty   5 E/720/05 Smt K.K. Rosy CCE, Calicut 02/2005 dt. 29.04.05 Rs.2500/- Penalty &n....

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....e. 4. We heard both sides.  The only issue before the Tribunal is the valuation of the goods cleared by HES and HPE to M/s. HMSPL which is a marketing firm. The learned Commissioner comes to the conclusion that the sales of these two units to the marketing firm are not at arms length and the manufacturing units and distributing marketing firm have interest directly or indirectly in the business of each other. Therefore, he has held that the value to be adopted is the sale price of the goods sold by the marketing firm. The learned JDR reiterated the findings of the Commissioner. For clarity we reproduced the following findings of the Commissioner in Para 33 of the Order-in-Original. "I find that Shri Christo George, the Managing D....

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....roducts are not marketed under the brand name of  "Hykon". Purchase price and sale price differ due to huge marketing expenses. There is no under valuation in purchase. He also brought to our notice that the total purchase of HMSPL from HES and HPE for the year 1998,1999 and 1999-2000 is Rs 34,48,067/- and Rs 1,04,52,719/- and Rs 44,57,790/- and Rs 62,24,839/- respectively. Whereas the total purchase from others for the said two years is Rs 35,40,242/- and Rs 59,66,648/-. Moreover, HES and HPE have also sold to other parties during the above two years for the amounts totaling to Rs 10,06,593/- and Rs 9,19,396/-. Therefore, he urged that there is no basis to sustain the finding of the Commissioner. 6. The Commissioner has stated that....