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2009 (7) TMI 317 - AT - Central ExciseAllegation that MSO and MTL are related persons within the meaning and scope as defined under Section 4 of the Central Excise Act, 1944 – revenue contend that price charged by the MSO to MTL is much lower - No evidence has been gathered to show that all the shares of the three companies are owned by the only family to support the conclusion that the profits may by any of the companies would stay within the family only and therefore, the corporate veil had to be lifted. – not proved that there is a mutuality of interest between the companies. - While it has been mentioned that the price charged is much lower, there is no detailed discussion to show how much lower is the price, whether it is much beyond the normal commercial transactions between the purchaser and buyer. There is no finding of a flowback. There is no evidence to show that all the shares are owned by the family members and no evidence to show that the price charged by the MSO to MTL is not normal. Therefore, we find that the evidence relied upon by the lower authorities are not conclusive enough to come to the conclusion that the MSO and MTL are related persons. - We find that the evidences referred to by the department are not sufficient to come to the conclusion and, therefore, on the ground of limitation also appellants succeed. Once, the duty demand is not upheld penalties also cannot be upheld.
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