TMI Blog2016 (6) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... he shareholders of the two companies are relatives (the directors here), or the director of the private limited company and partners of the firm are relatives or the directors of the private limited company and the proprietor are relatives can it be said that the two limited companies are also “related” to each other. That it is not so has been so held in various pronouncements of the Courts and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... challenging the impugned order which set aside the duty demand, interest and penalty. 2. The respondents are manufacturers of Iron and Steel products and hold Central Excise registration. During the period 22/03/2001 to 16/06/2003 the appellants cleared excisable goods to M/s J.S. Strips, Bhilai, M/s Alka Industries and M/s General Fabricators, Bhilai. A show cause notice was issued alleging t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same family and this would establish mutuality of interest. 4. The learned Counsel appearing for the respondents argued that goods were sold to independent buyers also and the sale price charged from such unrelated buyers is not disputed by the authority. When price is available, this alone can be treated as price in respect all the sales made. Further that respondent is a private limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and a firm or a private limited company and a proprietary concern can be said to be related in terms of sub-clause (ii) is what needs to be decided. The use of the word related in sub-clause (ii) has to be understood within the meaning of relative as defined under Section 6 of the Companies Act, 1956. A private limited company is an artificial person. It is a creation of the Companies Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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