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TMI Blog2002 (4) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal that the assessee and the chemical company were related persons. This being so, it is unnecessary to go into the alternate arguments advanced on behalf of the assessee. Thus the appeal succeeds, the Revenue shall refund to the assessee the deposit towards duty and the bank guarantee for the balance shall stand discharged. - 969 of 1995 - - - Dated:- 11-4-2002 - S.P. Bharucha, C.J.I., N. Santosh Hegde and Shivaraj V. Patil, JJ. [Order]. - The appellant is a public limited company. It manufactures glassware. One of the purchasers of such glassware during the period under appeal, namely, 6th September, 1979 to 15th January, 1982, was the Alembic Chemical Works Company Limited. Because the assessee held shares in this chemical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods for purposes of charging of duty of excise. "Section 4. Valuation of excisable goods for purposes of charging of duty of excise. (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to value, such value shall, subject to the other provisions of this section, be deemed to be. - (a) the normal price thereof, that is to say, the price at which such 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; Provided that - (i) Where, in accordance with the normal practice of the wholesale trade in su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uivalent thereof determined in such manner as may be prescribed. (2) xxxxxxx (3) xxxxxxx (4) For the purpose of this Section (a) xxxxxxx (b) xxxxxxx (c) 'related person' means a person who is so associated with the assessee that they have interest, directly or indirectly, in the business of each other and including a holding company, subsidiary company, a relative and a distributor of the assessee, and any sub-distributor of such distributor. Explanation. - In this clause, 'holding company', 'subsidiary company' and 'relative' have the same meanings as in the Companies Act, 1956 (1 of 1956); (d) xxxxxxx (e) xxxxxxx"4.It was submitted by learned Counsel for the assessee that the assessee was a public limited co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had sold its dyes to the two companies. The question was whether it could be said that the sales had been made to "related persons". In this regard, this Court said : "There are two points of view from which the relationship between the assessee and Atul Products Limited may be considered. First, it may be noted that Atul Products Limited is a shareholder of the assessee to the extent of 50 per cent of the share capital. But we fail to see how it can be said that a limited company has any interest, direct or indirect, in the business carried on by one of its shareholders, even though the shareholding of such shareholder may be 50 per cent." (Emphasis supplied) 7.In our view, this is the heart of the matter. The shareholders o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t should be added, remanded the matter for further inquiry into the facts. 9.At an earlier stage this Court had directed a stay of the order of the Tribunal provided the appellant deposited fifty per cent of the additional duty demanded and furnished a bank guarantee for the balance. That has been done. Now that the appeal succeeds, the Revenue shall refund to the assessee the deposit towards duty and the bank guarantee for the balance shall stand discharged. 10.The civil appeal is allowed. The order under appeal is set aside. 11.No order as to costs. 12.Learned Counsel for the Revenue now tells us that no appearance has been filed on behalf of the Revenue and that this defect shall be cured within two days. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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