9911796707
TMI Blog1999 (8) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... Mrs. Aruna Gupta, ld. D.R. 3. Ld. Consultant submits that the appellants had cleared the molasses on the basis of a contract for a large fixed quantity of molasses to be supplied by them to Sriram Distilleries Ltd. which was their subsidiary at Rs. 1500/- P.M.T. He submits that though the buyers was subsidiaries of the appellants, this relationship did not affect the market price and the said agreement was at arms length. However, the department alleged that since small quantities of molasses were sold to other buyers between Sept. 1994 and Nov. 1994 at Rs. 2000/- PMT, therefore the said value should be taken as a assessable value for their clearances to Sriram Distilleries Ltd. Ld. Consultant submits that they have a very strong case on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o evidence of flow back of money from buyer to assessee is concerned, even the two are otherwise related persons, since transaction is at arms length, price declared by the assessee is acceptable. He cites the landmark judgment of the Hon ble Apex Court in the case of UOI Others v. Atic Industries Ltd. as in 1984 (17) E.L.T. 323 (S.C.) wherein the entire concept of related persons as well as the effect thereof on assessable values was considered. It was held that in the absence of mutuality of interest in the business of each other, the company holding shares in the other company cannot be treated to be related persons. He also cites the case of Allied Textile Leather Industries v. UOI as in 1999 (109) E.L.T. 141 (Guj.) wherein Hon ble Gu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve carefully considered the rival submissions and records of the case. We find that in view of the fact that the Order-in-Original has not clearly recorded any finding as to how the there was a financial flow back from the buyer to the seller or as to how the price for such a large quantity contracted to be delivered over a specified period is artificially depressed price, and also in view of the fact that the judgment cited above have not been considered at all in the said order, therefore, the order before us is found to be in error of principles of natural justice. Since the matter lies in a short compass and since on consideration of the judgments cited, we are in agreement that mere relationship shall not affect the assessable value an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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