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TMI Blog1986 (4) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... le-sale cash price at which the excisable goods were sold by the firm of M/s. Alok Textiles on the basis that the firm of M/s. Alok Textiles was a related person. The facts giving rise to these appeals may be briefly stated as follows : 2. The respondents are a limited company carrying on business of manufacturing textiles in Surat. They sold the entire goods manufactured by them to about 15 to 20 wholesale dealers and one of such dealers was the firm of M/s. Alok Textiles. The partners of this firm are related to some of the Directors of the respondent. The Department contended that the value of the excisable goods for the purpose of levy of excise duty in the hands of the respondent must be calculated by reference to the wholesale cash p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on the view taken by us in regard to the interpretation of this definition, it cannot be said to be ultra vires or void. But even on the interpretation placed by us on the definition of 'related person', it is difficult to see how the firm of M/s. Alok Textiles could be said to fall within the category of 'related person', because though the firm of M/s. Alok Textiles had interest in the business of the respondents, it could not be said that the respondents had any interest, direct or indirect, in the business of M/s. Alok Textiles. Moreover, the firm of M/s. Alok Textiles was not the only firm to which the excisable goods were sold by the respondents in the wholesale trade. The respondents sold only 34 to 40% of the total production to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e wholesale cash price at which the excisable goods are sold by the respondents to M/s. Alok Textiles and other wholesale dealers, shall be taken to be the value of the goods for the purpose of levy of excise duty and such assessment shall be made in accordance with the judgment of this court in Bombay Tyres International case. The assessment shall be completed within six weeks from today and the bank guarantee given by the respondents will be encashed only to the extent to which the respondents may be held liable to pay any amount to the Department and in respect of the balance the bank guarantee will stand discharged and if no amount is ultimately found payable by the respondents to the Department, the whole of the bank guarantee will be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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