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TMI Blog2007 (7) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ited Company and they have sold the entire production of iron and steel castings to M/s. R.B. Agarwalla and Company. The Appellants are a private limited company whereas the buyer is a partnership firm. Four of the Directors in the Appellants company are partners in the buyers partnership firm. The Original Authority has held that the Appellants and the buyer are inter-connected undertakings and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no investment by the buyer in the Appellants Company, the price charged is the normal commercial price and there has been no extra commercial consideration. He further states that the buyer takes only 20% of its requirement from the appellants whereas at the same price another 80% is purchased from independent sellers which goes to prove that the price at which the appellants are selling is a mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Central Excise, Mumbai v. Universal Luggage Mfg. Co. Ltd. -2005 (190) E.L.T. 3 (S.C.). (v) Alembic Glass Industries Ltd. v. Collector of Central Excise and Customs - 2002 (143) E.L.T. 244 (S.C.). (vi) Commissioner of Central Excise, Surat v. Besta Cosmetic Ltd. - 2005 (183) E.L.T. 132 (S.C.). 4. With the help of these decisions, he argues that since the Department has not demonstrated m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Sr. Advocate were not before the Original Authority. 6. After hearing both sides and perusal of the case records including the cited case laws, we find that even though the appellants and the buyer are inter-connected undertakings, in terms of Rule 10(a), the Department is also required to prove that as they are related and have mutuality of interest under Section 4(3) to attract provision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew of our observations above, we find that the price at which the appellants have sold their goods are acceptable and since duty has been paid on such value, the demand confirmed by the impugned order is not sustainable and the same is set aside. The demand of interest and penalty imposed on the appellants are also set aside. The appeal is allowed with consequential relief to the Appellants. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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