9911796707
TMI Blog2006 (3) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessable value of the goods in the hands of the respondent. The Tribunal rejected the contention of the respondent that the two afore-mentioned companies were not "related persons". Held that- Contention raised by the respondent that its sale to the distributors were on retail basis has also not been refuted by the department. Counsel for the appellant has also failed to show that the price at which the goods were sold to the "related persons" was not the normal price at which the goods were being sold through any other distributor or dealer or was less than the market price at which it was being sold in the market or that there was any extra commercial consideration in fixing the normal value. Thus, the finding recorded by the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and the afore-mentioned two companies were "related persons" within the meaning of Section 4(4)(c) of the Act and therefore the transaction between the respondent on the one hand and the two aforementioned companies on the other were not on principal to principal basis. The adjudicating authority held that the respondent and the two afore- mentioned companies were "related persons" and the price at which the photo copiers manufactured by the respondent were sold by the afore-mentioned two companies in the market would be the normal price for the purposes of arriving at the assessable value of the goods in the hands of the respondent. 4. Respondent, being aggrieved, filed an appeal before the Tribunal. The Tribunal rejected the content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... practice of the wholesale trade in such goods, such goods are sold by the assessee at different prices to different classes of buyers (not being related persons) each such price, shall, subject to the existence of the other circumstances specified in clause (a), be deemed to be the normal price of such goods in relation to each such class of buyers; (ii) where such goods are sold by the assessee in the course of wholesale trade for delivery at the time and place of removal at a price fixed under any law for the time being in force, or at a price, being the maximum fixed under any such law, then, notwithstanding anything contained in cl.(iii) of this proviso the price or the maximum price, as the case may be, so fixed shall, in relation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he reading of the entire section it is clear that three conditions are required to be satisfied before invoking the third proviso. Firstly there should be mutuality of interest; secondly that the alleged related person should be related to the assessee as per definition of Section 4(4)(c) given in the Act and thirdly and importantly that the price charged from the "related persons" was not the normal price but the price lower than the normal price and because of extra commercial considerations the price charged was less than the normal value. 7. Counsel for the parties have been heard. 8. Since the finding that M/s Murphy (India) Limited and M/s Mecotronics (P) Limited are "related persons" to the respondent within the meaning of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
