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DRI nabs Dubai-bound pax with FC worth Rs 1.93 croresCX - Too late for Revenue to complain that there is non-compliance by Settlement Commission with mandatory provisions of law: High CourtI-T - Tax Recovery Officer cannot summarily assume powers under Indian Contract Act, 1872, to suo motu declare a transaction of sale to be void & without approaching civil court: HCI-T - Expenses incurred for purely business purposes not being incurred on employees, would not attract Fringe Benefit Tax: HCCX - General practice amongst masses to not consider trading as an 'exempted service' till amendment was made in CCR - assessee had no malafide intention to avail undue benefit: CESTATCJI impeachment - Opposition Parties finally do it; hands over Notice to Vice PresidentBRICS discusses constitution of Working Group on illicit financial flowsCBDT shifts DGHRD office to Jawaharlal Nehru StadiumCBIC clarifies that remnant fuels (HSD/LDO) (after ship breaking) are classifiable under Chapter 27 and free from import policy restrictionsI-T - Mere projection of profit statement found in loose sheets from taxpayer's premises, is no basis for levying penalty in his hands: ITATGoM on Transport recommends uniform road tax structureCX - Assessee taking credit on rejected goods, recyling same and paying duty on clearance alleging that credit has been availed irregularly is unsubstantiated no question of double duty : CESTATGovt seeks feedback to Draft Coastal Regulation ZoneI-T - Payments made to founder or relative of trust, if credited to trust's account immediately without taking any undue benefit from it, will not upset exemption benefit u/s 11: ITATFC to individually assess needs of each State: NK SinghCX Mere reiteration of order of penalty imposed by original authority, who had jurisdiction, by first appellate authority, who lacked jurisdiction, does not cause grievance to appellant at that stage: CESTATGoM on Transport recommends uniform road tax and national permits for buses and taxisJustice Loya death case - SC dismisses pleasChennai Customs nabs pax coming from Dubai with gold worth Rs 2.5 Cr + also seizes 7.5 kg of seahorses during vehicle checkGovt to give new award to certain ranks of Civil servantsVAT - Reimbursement received by dealer for supply of spare parts to its customers under warranty period, are not liable to VAT under Maharashtra VAT Act: HCIT - Where Revenue detects massive tax evasion through bogus bills, it cannot wash hands of it through mere additions: ITATIT - Failure to explain scientific method in determining the amount of performance bonus payable to employees can lead to its disallowance : ITATST - Demand of differential amount of service tax alleging that entire amount collected by PCO operator is subject to levy of service tax cannot sustain for period prior to 01.03.2011: CESTATIndia almost ready with Rs 600 Crore Chandrayaan-2Govt launches Study in India Portal for foreign studentsAfter issuance of SCN, write to noticees about availing window of Settlement Commission for early settlement of disputes - CBIC instructs fieldCBDT Diktat on Misconduct - But, Mr Prime Minister, Actual High-handedness lies in Revenue Target Fixation!
 
CX - Since procurement price is decided by an open tender procedure, it cannot be said that transaction value has been influenced : CESTAT

By TIOL News Service

BANGALORE, APRIL 20, 2017: DURING the disputed period, appellant effected sale of Poly Iso Butane (PIB) to various Oil Marketing Companies (OMCs) pursuant to competitive bidding procedure in which various suppliers including appellant took part.

The Department disputed the transaction value between appellant and BPCL on the ground that both are related parties as per Section 4 of the Act. After process of adjudication, Commissioner confirmed demand of differential excise duty along interest and penalty.

Appellant is before the CESTAT and challenges the impugned order on merits as well as revenue neutrality and limitation.  Following case laws are also cited in support viz. Bharti Telecom Ltd - 2008-TIOL-124-SC-CX and Universal Luggage Mfg. Co. Ltd - 2005-TIOL-152-SC-CX. Revenue is also in appeal seeking imposition of equivalent penalty u/s 11AC and relies on the apex court decision in Dharamendra Textile Processors: - 2008- TIOL -192-SC-CX-LB .

After considering the submissions made by both sides, the Bench observed-

+ The various public sector units including OMCs are mandated by the Central Vigilance Commissioner to adopt the open tender procedure for procurement of goods. Such procedure is mandated with the objective of transparency in procurement and the possibility of lowest price discovery by open competition. Since the price of procurement of PIB for supply to BPCL has been decided by such an open tender procedure, it cannot be said that the transaction value has been influenced by the relationship between KRL and BPCL.

+ Further, there are also instances where KRL has supplied the same product at lesser prices than that to BPCL. It is also noted that the price of the product is also volatile as in the case of most petroleum products whose prices are ultimately depending on the price of crude oil. In the above circumstances, it cannot be said that the price at which KRL has supplied to BPCL is a preferential price influenced because of the special relationship between KRL and BPCL.

+ Revenue has not brought on record any evidence to indicate that price is not the sole consideration for sale of product to BPCL .

+ Transaction value is acceptable during disputed period in respect of clearances made to BPCL.

The assessee appeal was allowed and the Revenue appeal was dismissed.

(See 2017-TIOL-1319-CESTAT-BANG)


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