TMI Blog2018 (11) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... on 2, clause 41 of the Companies Act, 1956, the definition relates only in terms of natural persons. Since, the foundation of the charge i.e, relationship, itself is not established, the other charges automatically fail - appeal allowed. - Appeal No. E/1613/2010-DB - A/12575/2018 - Dated:- 13-11-2018 - Mr. Ramesh Nair (Judicial) And Mr. Raju, Member (Technical) For the appellant: Shri S.J. Vyas, Advocate For the respondent: Shri S.N. Gohil, Supdt., (AR) ORDER Per: Raju This appeal has been filed by M/s Neeraj Polymers Ltd. against confirmation of demand of duty, interest and imposition of penalty. 2. Ld. Counsel for the appellant pointed out that they are manufacturers of plastics bags classifiable under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the excisable goods are sold by the assessee to or through a person who is related in the manner specified in any of the sub-clauses (ii), (iii) or (iv) of clause (b) of sub-section (3) of section 4 of the Act, the value of such goods shall be the normal transaction value] at which these are sold by the related person at the time of removal, to buyers (not being related person); or where such goods are not sold to such buyers, to buyers (being related person), who sells such goods in retail : Provided that in a case where the related person does not sell the goods but uses or consumes such goods in the production or manufacture of articles, the value shall be determined in the manner specified in rule 8. He pointed out that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elated in that manner just because of the Directors of the appellant company are themselves proprietors of the trading firms in the instant case. In these circumstances, it cannot be said that they are related parties. 4.1 Revenue has pointed out that the manufacturing margin of the appellant firm is 1-2 percent whereas the trading margin of the two trading firm is to the extent of 8-10 percent. They have also pointed that goods sold are directly supplied from the appellant s premises. In this background it would appear that the trading firms have been created to avoid payment of Central Excise Duty payment. These facts point` to an arrangement but are by itself not sufficient to hold them as related persons. Since, the foundation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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