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2015 (10) TMI 2547 - AT - Central ExciseDemand of duty with interest - related person - laundry soap - whether the duty be levied and exemption notification withdrawn on the ground that the director of M/s. Washwell Soap (P) Ltd. is relative of the proprietor of the appellants and they are related person - Held that: - Both concerns are owned by close family relations. Shri Devilal Somani, proprietor of Devilal Kutir Soap, his wife and his father Shri Ladu Ram Somani are directors of M/s.Washwell Soap Pvt.Ltd. It is seen stated that Shri Devilal Somani had relinquished the directorship of M/s. Washwell Soap (P) Ltd. on 1.6.1999. Be that as it may, there is no evidence placed to bring out any mutuality of interest between two concerns to treat them as related persons. Commonness of the directors or even one or two directors being relatives of the director/partner of other concern cannot make the two as related persons unless there is evidence of mutuality of interest of two concerns, or interest of one in the business of the other. There is no categorical statement in the declaration that they are related persons. Moreover, the department has not carried out any investigation to ascertain whether there is mutuality of interest - the demand of duty, interest and penalties are unsustainable - appeal allowed - decided in favor of appellant.
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