Koya & Company Construction Pvt. Ltd. (the Assessee) was engaged in the manufacture and selling of PSC pipes. The Assessee cleared the PSC pipes on payment of Excise duty to KCCL, an interconnected undertaking. The duty liability was calculated on Transaction Value in respect of clearance made to an interconnected undertaking.
The Department argued that since there was ‘mutuality of interest’ as the Assessee had received interest-free advance of Rs. 7.2 crores from his inter connected undertaking, therefore the Assessable Value was to be determined as per Rule 9 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules 2000 (the Valuation Rules)
The Assessee filed an appeal before the Hon’ble Tribunal arguing that:
Holding and Subsidiary relationship, Rule 10 of the Valuation Rules was also inapplicable
Accordingly, the Hon’ble Tribunal held that:
Being aggrieved, the Department filed an appeal before the Hon’ble Apex Court.
The Hon’ble Apex Court after observing that the Tribunal had passed the order on the basis of facts and circumstance of the case, held that since the Tribunal is the final fact finding authority, no appeal would lie before the Supreme Court on such factual findings.