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TMI Blog2004 (8) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... parties taken as the assessable value. The orders have relied on the third proviso to Section 4(1)(a) of the Central Excise Act and definition of 'related person' in Section 4(4)(c) in passing the orders. Order-in-Original No. 3/AC/V/P1, dated 28-10-1980 states as under :- "4.1 I have gone through the records of the case. The definition of "related person" has been given in sub-section (4)(c) of Section 4 of the Central Excises and Salt Act, 1944, which is reproduced below :- "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 includes a holding company, a subsidiary company, a relative and a distributor of the assessee, and any sub-dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Products Mfrs. Ltd. v. Commissioner of C. Ex., Chennai - 2003 (157) E.L.T. 172 and Beacon Neyrpic Ltd. v. Commissioner of Central Excise, Madras - 2001 (133) E.L.T. 590. The Counsel also took us through the show cause notice and pointed out that there was no allegation at all in the notice that appellant's sale price to its holding company was not a normal price or that there were any other considerations or factors affecting the price. As against this, the learned SDR has submitted that once the transaction is between related parties, that transaction value cannot constitute assessable value in the light of the decision of the Apex Court in the case of Flash Laboratories Limited v. Collector of Central Excise, New Delhi - 2003 (151) E.L.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be said that the third proviso to Section 4(1)(a) is applicable. (b) The first part of the definition of related person as mentioned in Section 4(4)(c) of the said Act lays down that a person who is sought to be branded as a related person must be a person who is so associated with the assessee, that they have interest directly or indirectly in the business of each other. The inclusive part of the definition is merely an extension of the first part. Both the parts must be read conjunctively. If the argument of the learned Counsel for the respondent is accepted, then the word "and" which joins the two parts of the definition would be rendered meaningless. It is well-settled rule of interpretation that the Legislative mandate should be so r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n affected by expenses incurred by the buyer for sales promotion and advertisement. We read Para 7 of the judgment :- "7. Having regard to the above decision and the plain meaning of the definition of "related person", it is to be noticed that the appellant is a subsidiary company of Messrs Parle Products Limited and Messrs Parle Biscuits Limited is also a subsidiary company of Messrs Parle Products Limited. Therefore, the relationship between the appellant and Messrs Parle Biscuits Limited though indirect, they have mutual interest in the business of each other. The facts and circumstances of the case show that there is mutuality of interest between the three companies as sixty per cent of the products of the appellant are sold to Messrs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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