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2010 (11) TMI 38 - SUPREME COURTRelated Persons / related party - valuation - Held that: it appears what is important is that each of the parties involved should have an interest, whether direct or indirect in the business of each other - The Tribunal upon meticulous analysis of the terms and conditions of the agreement found that the price was being fixed on the basis of the formula agreed between the parties - The Tribunal rightly arrived at the conclusion that pricing in terms of clause (6)(iii) would not lead to the conclusion that the transaction was not one between principal to principal. - M/s. Kwality Ice Cream and BBLIL are not `related persons'. The transaction between them is of the nature of principal to principal and the price was the sole consideration for the sale of goods. Therefore, the assessable value cannot be computed on the basis of the price at which BBLIL sold the product from its depot.
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