1998 (3) TMI 404

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....ort,"ROFFE") . The Appellant manufactured construction chemicals using the brand name of "ROFF". The department felt that going by the terms of the MOU, "ROFFE" must be regarded as a "Related Person" vis-a-vis. Four Show Cause Notices dated 4-5-1993, 9-9-1993, 8-3-1994, and 6-7-1994 were issued in respect of the aforesaid Price Lists and the prices covered by these Price Lists alleging such relationship between the manufacturer and the Buyer and proposing to determine the assessable value on the basis of prices charged by ROFFE to their wholesale buyers. The Annexures to the show cause notices provided a list of various construction chemicals manufactured and sold by the appellant. Appellant resisted the notices denying the charge and also ....

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....ory and evaluate the suitability of products manufactured in relation to the quality, quantity, packing etc. Clause 4 required the appellant to procure the raw materials from parties approved by ROFFE. The Collector (Appeals) has also relied on the circumstances that the appellant and ROFFE had a common Managing Director, an averment not made in the show cause notices. 4. We have already indicated that the show cause notices did not allege any 'relationship' between the two parties. But perhaps "relationship" was at the back of the mind of the Superintendent who issued the notices. The department did not indicate either in the show cause notices or at any subsequent stage what interest the appellant had in the business of ROFFE and wh....