https://www.taxtmi.com/caselaws?id=92117 For valuation under section 4 of the Central Excises and Salt Act, 1944, related person status requires mutuality of interest, meaning each party must have a direct or indirect business interest in the other. Mere shareholding by the buyer in the assessee is insufficient without corresponding interest of the assessee in the buyer, and a commercial relationship or high sales volume does not by itself displace principal-to-principal dealing. On the stated facts, CEAT Ltd. was not a related person, there was no proof of extra commercial consideration, and its resale price could not be adopted as the assessable value; the demand and penalties were therefore unsustainable. en-us Fri, 28 May 1999 00:00:00 +0530 Mon, 24 Oct 2011 17:33:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=92117 For valuation under section 4 of the Central Excises and Salt Act, 1944, related person status requires mutuality of interest, meaning each party must have a direct or indirect business interest in the other. Mere shareholding by the buyer in the assessee is insufficient without corresponding interest of the assessee in the buyer, and a commercial relationship or high sales volume does not by itself displace principal-to-principal dealing. On the stated facts, CEAT Ltd. was not a related person, there was no proof of extra commercial consideration, and its resale price could not be adopted as the assessable value; the demand and penalties were therefore unsustainable. Case-Laws Central Excise Fri, 28 May 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=92117