TMI Blog2002 (9) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... resist the conclusion that the respondent and M/s. International have a direct interest, in the business of each other and that the mutuality of interest between the two is apparent. Once the findings are accepted, the conclusion that there is mutuality of interest between the two concerns is inevitable. In this view of the matter, we set aside the finding of the Tribunal that the respondent and M/s. International are not related persons. As it is clear that the respondent had disclosed the correct facts including the price at which the goods were sold to related person and the difference in the price. In view of this declaration, it is futile to contend that there was any suppression of fact on the part of the respondent. The learned A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dependent buyers should not be charged when they were not paying excise duty, in view of the benefit of the Notification 71/78, and as to why penalty should not be imposed. After adjudication, the duty and penalty were confirmed. On appeal, the Tribunal accepted the findings recorded by the adjudicating authority and held that the respondent and M/s. International were related persons. In regard to the application of larger period of limitation under Section 11A of the Excise Act, the Tribunal found that there was no suppression of fact by the respondent and, therefore, the benefit of Section 11A was not available to the Revenue. The Tribunal allowed the appeal of the respondent herein on July 25, 1991. That is the order under challenge bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of each other, they would be treated as related persons. The definition also includes a holding company, a subsidiary company, a relative and a distributor of the assessee and any sub-distributor of such distributor, but we are not concerned with the later part of the definition. The ingredients of the first part of definition are : first, a person to be treated as related person must be associated with the assessee; secondly, the person so associated and the assessee must have interest in the business of each other; and thirdly, such interest may be direct or indirect. Mutuality of interest between the other person and the assessee in the business of each other, whether direct or indirect, is necessary to label such a person as a relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow turn to the findings recorded by Customs, Excise and Gold (Control) Appellate Tribunal. It was found that the respondent and M/s. International were having common Directors and that they were relatives of one another; a further finding was also noted that both the companies were family concerns and were beneficiaries of their ventures and that the benefit of both the concerns are shared by members of one and the same family. From these findings, it is difficult to resist the conclusion that the respondent and M/s. International have a direct interest, in the business of each other and that the mutuality of interest between the two is apparent. We may point out here that the Tribunal's observation, quoted above, that no evidence regarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 3 4 5 6 7 8 1. Projector Head Major buyer M/s. International 12779/- per pc. 372/- 2869/- 9544/- 9544/- 2. Sound Head - do - 2807/- per pc. 82/- 629/- 2096/- 2096/- 3. Arc Lamp - do - 6854/- per pc. 200/- 1535/- 5119/- 5119/- 1979-80 1. Projector Head - do - 13530.24 per pc. 570.24 3360/- 9600 9600 2. Sound head - do - 3065.44 129.19 761.25 2175 2175 3. Arc Lamp - do - 7216.13 304.13 1792.00 5120 5120" ..... X X X X Extracts X X X X X X X X Extracts X X X X
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