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2022 (2) TMI 952 - AT - Central ExciseValuation- inter-connected undertaking - related parties or not - applicability of doctrine of mutuality of interest - Section 4 (3)(b)(iv) of the Central Excise Act, 1944 read with Section 2(g) of the Monopolies and Restrictive Trade Practices Act, 1969 - extended period of limitation - HELD THAT:- Appellants do not dispute that they are “inter connected undertaking” as defined by the MRTP Act and Central Excise Act, 1944 but they state that they being not “holding and subsidiary companies” cannot be said to related in terms of Section 4, ibid as they do not have mutuality of interest in the business of each other - for the reason common director and 50 % share holding of the Appellant 2 in the Appellant 1 cannot be reason for establishing the appellants as related person. The fact that Appellant 1 and Appellant 2 were not related person has been brought out in the cost auditor report received by the department on 31.12.2007, as recorded while recording the submissions of the appellant in the impugned order - this cost auditor report has not been placed on record by either side but if the cost auditor report had concluded that the Appellants were not related then definitely Commissioner should have recorded the reasons for rejecting the said report. Since the appeal are decided on merits, the issue on limitation and imposition of penalties need not be discussed. Appeal allowed - decided in favor of appellant.
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