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TMI Blog2002 (12) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... a subsidiary company of Messrs. Parle Biscuits Limited. The appellant was found paying duty at the price at which the goods were being sold to the holding company, namely, Parle Products Limited. A show cause notice was issued to the appellant company alleging that Messrs. Parle Products Limited and Messrs. Parle Biscuits Limited were "related persons" and were purchasing goods at lower prices and selling the same at higher prices and that the appellant had not filed the price list in Part IV for the sale to a related person, rather they filed the price list in Part I. The Revenue took objection that this amounted to mis-statement. The appellant was also asked to show cause as to why Rs. 11,30,570.35 p. should not be demanded from him as di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at all the three parties were 'related persons' in terms of Section 4(4)[c] of the Act. The appellant then preferred an appeal before the Commissioner of Central Excise (Appeals), Delhi. The appeal was dismissed by the Commissioner of Central Excise (Appeals) and aggrieved by the same, the appellant preferred an appeal before the Custom, Excise & Gold (Control) Appellate Tribunal. By Final Order No. 828/2000-A, the appeal was dismissed and it was held that the four show cause notices issued to the appellant were sustainable in law. Aggrieved by the same, Civil Appeal No. 7216 of 2000 is filed. 3.We heard learned counsel for the appellant as also learned counsel for the Revenue. The counsel for the appellant contended that the appellant-com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any, a relative and a distributor of the assessee, and any sub-distributor of such distributor." 5.The definition of "related person" shows that when an assessee is so closely associated with another person, directly or indirectly, in the business, then it could be said that they are "related persons". The definition further shows that the holding company and subsidiary company have got special significance. It is clear from the definition that there must be mutuality of interest between the two persons. In Union of India v. Bombay Tyre International - (1984) 1 SCC 467, the constitutional validity of this provision was challenged and it was contended that the definition of the expression "related person" was arbitrary as it would include w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee that they have interest directly or indirectly in the business of each other." While dismissing the appeal, this Court explained the circumstances under which two concerns could be treated as "related persons". "What the first part of the definition requires is that the person who is sought to be branded as a 'related person' must be a person who is so associated with the assessee that they have interest, directly or indirectly, in the business of each other. It is not enough that the assessee has an interest, direct or indirect, in the business of the person alleged to be a related person nor is it enough that the person alleged to be a related person has an interest, direct or indirect, in the business of the assessee. It is esse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the facts and circumstances of the case, we do not find any reason to disagree with the views expressed by the Tribunal. 9.In Civil Appeal No. 7216 of 2000, the appellant further contended that it received four show cause notices dated 10-6-1991, 20-8-1991, 16-12-1991 and 13-4-1992. The appellant contended that the Asstt. Collector held that the appellant and Messrs. Parle Products Limited and Messrs. Parle Biscuits Limited are "related persons" but this order was reversed by the Collector vide order dated 23-8-1991 and according to the appellant, the department did not challenge the subsequent order and therefore the subsequent order attained finality. The Tribunal has dealt with this aspect in Paragraph 7 of the impugned order. It w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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