Related person valuation requires mutuality of interest; common partners alone are insufficient without evidence of business interdependence.

For valuation under Section 4(4)(c) of the Central Excises and Salt Act, a buyer concern is a related person only where there is direct or indirect association with mutuality of interest in each other's business. On the facts, no material showed mutuality of interest or money flow back between the units, and mere common partners was insufficient to establish related-person status. Sales were also not exclusive to the alleged related concern, with a substantial part made to unrelated buyers, so the valuation adopted in the impugned order could not be sustained.

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Issues: Whether the buyer concern could be treated as a "related person" for valuation purposes under Section 4(4)(c) of the Central Excises and Salt Act.

Analysis: The relationship test under Section 4(4)(c) required direct or indirect association accompanied by mutuality of interest in the business of each other. On the facts, no material showed mutuality of interest or any money flow back between the units. Mere commonness of partners was held insufficient to establish related-person status, especially when the sales were not exclusive to the alleged related concern and a substantial portion of the goods was sold to unrelated buyers.

Conclusion: The buyer concern was not a related person; the valuation adopted in the impugned order could not be sustained.

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