TMI Blog1989 (6) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... n of brassieres manufactured by the petitioners at an ex-factory rate based on the petitioners' manufacturing cost and manufacturing profits. The marketing and sales efforts in respect of these bras were put in by Dawn Mills and the prices at which they were sold were also fixed by Dawn Mills. 3. On 20th July 1974 the petitioners received a notice from the Superintendent of Central Excise, Bombay, under the provisions of the old Section 4. The notice stated that it was seen from the invoices that the petitioners' entire production of bras was sold to Dawn Mills and that the price that the petitioners had declared for the purposes of assessment of excise duty was the price at which the petitioners sold them to Dawn Mills. On going t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Collector of Central Excise, Bombay. He said that the petitioners had admitted in their replies that they were the subsidiary company and Dawn Mills the holding company, that Dawn Mills had 2,500 equity shares of Rs. 100/- each in the petitioners' total equity capital of Rs. 10,000,00/-, and that the Directors of the petitioners had "special attachment to Dawn Mills". He had, therefore, no doubt that the transactions between Dawn Mills and the petitioners were not at arm's length. Since they were not at arm's length and in the ordinary course of business, he ordered that the prices charged by Dawn Mills to their dealers or distributors should be taken as the wholesale cash price within the meaning of Section 4. Accordingly, the demands u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f their assessable value and the assessable value had to be determined on the basis of the price at which Dawn Mills were selling to wholesale dealers. The revision application, accordingly, confirmed the demands made upon the petitioners. 9. This writ petition is filed to assail the orders aforementioned. 10. My attention has been drawn to the judgment of the Delhi High Court in Union of India v. Hind Lamps Ltd., Shikohabad, 1981 (6) E.L.T. 11, with which I agree, and which squarely covers this case. Upon the facts there, the court said, it could reasonably be held that there was a special relationship between the buyer and the seller. However, the existence of the special relationship by itself did not mean that there wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf. The petitioners shall be entitled to advance intimation of such material as the authorities may desire to rely upon for this purpose. 14. Accordingly, the rule is made absolute as aforestated. 15. Mr. Shroff, learned Counsel for the petitioners, applies that the bank guarantee and bond given by the petitioners pursuant to the interim order in this writ petition should stand discharged. Mr. Desai, learned Counsel for the respondents, submits that they should remain effective pending determination on the aforesaid show cause notices. In my view, the submission made by Mr. Desai deserves acceptance. Accordingly, the bank guarantee and bond shall be kept alive pending the determination on the show cause notices by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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