Home Case Index All Cases Central Excise Central Excise + SC Central Excise - 2015 (10) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2150 - SC - Central ExciseValuation of goods - Related person and favoured buyer - mutuality of interest - Determination of transactional value - As far as M/s. Haldyn is concerned, it is owned by the Shetty group and the Mehta group who subscribe 52 per cent and 48 per cent shares respectively in the said company. On the other hand, M/s. Travin, one of the purchasers, is wholly owned by the Shetty group and other three firms are wholly owned by Mehta group. Thus, from the aforesaid, it is argued by Mr. Jaideep Gupta, learned senior counsel appearing for the Revenue, that since M/s. Haldyn on the one hand and the four purchasers on the other hand belong to same group(s), the mutuality test automatically stands satisfied. - where the two companies/firms etc., belong to the same group then the test of mutuality is established and satisfied. In a sense, the Court has torn the corporate veil thereby pointing out that such family concerns would be beneficiaries in the affairs of each other. Held that:- CESTAT was not right in holding that there was no mutuality of interest and, therefore, supplier on the one hand and the purchaser on the other hand were not related persons. Insofar as the price manipulation is concerned, i.e., sale of the goods by M/s. Haldyn to the aforesaid purchasers at a depressed price, the same has been established on record on the basis of plethora of evidence tendered by the Revenue which has been discussed in detail in the order of the Commissioner - Impugned order is set aside - Decision in the case of Collector of Central Excise, Ahmedabad v. ITEC (P)Ltd., Bombay [2002 (9) TMI 106 - SUPREME COURT OF INDIA] followed - Decided in favour of assessee.
|