2008 (7) TMI 1084 - SCH - Central Excise

Summary

Issues involved: Determination of whether the price at which excisable goods were sold by one company to another company, both being related persons, was lower than the market price as per the Central Excise and Salt Act, 1944.

Summary:
The case involved a dispute regarding the pricing of excisable goods sold by Cosepal Fiscal Industries Limited to Standard Batteries Limited, both being related entities. A show cause notice was issued to Cosepal Fiscal Industries Limited for not paying central excise duty on the selling price of the goods. The Commissioner confirmed the demand and imposed penalties and interest. The assessee appealed to the Tribunal, which set aside the original order based on the finding that the two companies were not related within the meaning of the Act. The Tribunal's decision was upheld by the Supreme Court, stating that the revenue failed to show any infirmity in the Tribunal's order, which was considered a finding of fact not subject to interference.

The Supreme Court dismissed the appeals, upholding the Tribunal's decision that the companies were not related persons as defined by the Act, and therefore, the pricing was not in violation of the law. No costs were awarded in the matter.