Valuation rules should not be invoked, if the transaction is done on arm’s length price even in case of related parties – SC

CA Urvashi Porwal Brief of the Case In the case of Commissioner of Central Excise V/s. M/S. Detergents India Ltd. & Anr., Supreme Court has held that in case of related party transactions, proviso (iii) of Section  4(1)(a) will not be applicable when there is no “arrangement” between Shaw the related parties to depress a  price  which  is  otherwise  at arm’s length. Brief Facts Detergents India Limited (DIL), now Henkel Marketing India Limited, was at the relevant time a subsidiary of Shaw Wallace and Company Limited. Both were public limited companies.  Shaw Wall...