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C.C.E. Delhi-I Versus M/s. Seth Brothers (Perfumers) Pvt. Ltd.

2016 (6) TMI 1015 - CESTAT NEW DELHI

Valuation - relating parties - allowed 25% discount to sole buyer purchasing goods for above ₹ 60 lakhs - It is seen that M/s. Seth Trading Company is a partnership firm of four partners who are wives / sons of Directors of the appellant company. Hence by entertaining a view that the transaction between the appellant and M/s. Seth Trading Company can be considered as transaction between interconnected undertakings in terms of section 2(g) of MRTP Act 1969, proceedings were initiated to dem .....

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outstanding amount as a reason for rejecting the transaction value including the trade discount offered to all. Working in the same premises or the trading firm using the logo and name of the manufacturing firm by itself are of no consequence to consider the transaction value as tainted. - Demand set aside - Decided in favor of assessee. - Appeal No. E/1103/2007 & E/616/2008-EX(DB) - FINAL ORDER NO. 51981-51982/2016-EX(DB) - Dated:- 16-5-2016 - MS. ARCHANA WADHWA, MEMBER (JUDICIAL) AND SHRI B. .....

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60 lakhs in a calendar year. During the course of audit of their accounts, officers found that one M/s. Seth Trading Company, a partnership firm is the only buyer purchasing goods for above ₹ 60 lakhs and availing the trade discount of 25%. It is seen that M/s. Seth Trading Company is a partnership firm of four partners who are wives / sons of Directors of the appellant company. Hence by entertaining a view that the transaction between the appellant and M/s. Seth Trading Company can be co .....

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se orders Revenue is in appeal. 2. The Ld. AR elaborated on the grounds of appeal. He submitted that M/s. Seth Trading Company is a partnership firm with partners who are closely related to the Directors of the respondent company and should be considered as interconnected undertaking in terms of section 2(g) of MRTP Act 1969. The term relative shall have the meaning assigned as per clause (41) of section 2 of the Companies Act, 1956. As the partnership firm is constituted by the partners who are .....

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sted the grounds of appeal and submitted that there is nothing new in these grounds which were not examined by the Commissioner (A) in his impugned orders. 4. We have heard both the sides and examined the appeal papers. The short point for discussion is whether or not M/s. Seth Brothers (Perfumers) P Ltd. - respondent in these appeals and M/s. Seth Trading Co. were interconnected undertakings for the purpose of valuation of excisable goods cleared by the respondent. We find that the original aut .....

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ication dated 30.06.2000. We have perused the impugned order carefully. The Ld. Commissioner (A) examined in detail applicable provisions of law relevant to the issue and arrived at the conclusion that the respondent company and M/s. Seth Trading Co. are separate legal entities for all purposes and cannot be termed as interconnected undertaking or relative to each other. As correctly pointed out by Ld. Commissioner (A) for rendering the buyer a related person of the respondent in terms of sub se .....

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