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2010 (4) TMI 304 - HC - Central ExciseRelated party - Demand and recovery – Held that: - there is no material to show that the profits of both the Companies were shared by the family members of the petitioner and M/s. Dagger International.- there is no material to show that the profits of both the Companies were shared by the family members of the petitioner and M/s. Dagger International. - The price should be unreasonably low to conclude that the two Bodies are related. In the instant case, even the show cause notice did not make out such an allegation. A related person must be a person who is so associated with the assessee that they have interest directly or indirectly in the business of each other. But, unfortunately, the respondents could not establish that the petitioner and M/s. Dagger International are related persons. - the show cause notice issued by the respondents is bad in law. There is violation of principles of natural justice in issuing the show cause notice and taking the subsequent proceedings by the respondents. The petitioner and M/s. Dagger International are found not to be related persons.
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