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2009 (2) TMI 192 - AT - Central ExciseRelated Persons – Valuation - The demand is on the basis that SVS and MBD are related persons and the sale price adopted by SVS for sale of molasses to MBD was much lower than price of molasses of similar manufacturers at the material time – held that - that the person sought to be branded as a related person in terms of Section 4(4)(c) of the Act must be one who is so associated with the assessee that they have interest directly or indirectly in the business of each other - The Commissioner found mutuality of interest between the two entities solely on the ground that SVS issued 0% freely convertible debentures for a value of Rs. 1200 lakhs to MBD - purchase of 0% fully convertible debentures cannot be held to be interest free loan extended by MBD to SVS - , in the absence of allegation of mutuality of interest on any other ground, even interest free loan extended by the buyer cannot to be a reason to hold that the sale price to the buyer is not a normal price – demand set aside.
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