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TMI Blog1987 (5) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tariff Schedule) sold to M/s Carbon Corporation Ltd., Nasik, By a letter dated 14-10-1981, the said facility was withdrawn by the Assistant Collector who asked the appellants to remove the goods under Central Excise Rule 56-B since, in the view of the Assistant Collector, the appellants were not eligible for the facility of invoice value assessment. The Assistant Collector s reason was that the appellants had made certain financial investments in M/s Carbon Corporation Ltd., Nasik. The appellants protested against the decision stating that the appellants and M/s Carbon Corporation Ltd. had no mutual interest in the business of each other and that the financial investment made by the former in the latter was pursuant to certain business po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... har, J.D. for the. respondent. 3. Shri Ganguly cited the judgment of the Supreme Court in Union of India and others v. Atic Industries Ltd. -1984 (17) E.L.T. 323 (SC) in support of his submission that mere financial investment by a company in another company would not make the latter a related person with reference to the former. He contended that the sale of the goods was on a principal to principal basis and that the department had not adduced any evidence to show that there was a mutuality of business interests between the appellants and the Carbon Corporation. The benefit of Notification No.120/75 had, therefore, been incorrectly disallowed. In response to a query from the Bench, Shri Ganguly stated that the department had not demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(a) provides that the assessable value shall be the normal price of the goods, that is to say, the price at which the goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal, where the buyer is not a related person and the price is the sole consideration for the sale. The concept of related person is a recurring theme in the other provisions in Section 4 also and the term related person has been defined as a person who is so associated with the assessee that they have interest, directly or indirectly, in the business of each other and includes a holding company, a subsidiary company, a relative and a distributor of the assessee, and any sub-distributor of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indirect, in the business of Atul Products since the transactions between them were on a principal to principal basis. 5. Though the concept of related person , in terms, is not present in the Notification No. 120/75, we have necessarily to keep the principles enunciated by the Supreme Court with reference to Section 4 in the aforesaid judgment in determining whether there is any commercial, financial or other relationship between the assessee (Graphite India Limited) and the buyer (Carbon Corporation). From this point of view, it cannot be said that former has a financial relationship with the latter. Even if, for argument s sake, it is to be assumed that there exists a financial relationship, the department has to establish that the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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