1988 (3) TMI 297

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....s is a machinery component. It is used to control the speed of electric motors. The nature of the component is such that its customers would be the manufacturers of electic motors only. Being a small Company and not wanting to takeover the burden of marketing their goods to such manufacturers all over the country, the appellants appointed M/s. Greaves Cotton & Co. Ltd., a big Company having a wide marketing network, as their sole distributor. They entered into an agreement with M/s. Greaves Cotton & Co. Ltd. on 2-6-1978. This agreement was valid for 5 years. The next agreement was, however, entered into on 22-7-1986. During the intervening period, the old arrangement between the appellants and M/s. Greaves Cotton & Co. Ltd. continued. The a....

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....e disallowed the deduction of 20% discount given by the appellants to M/s. Greaves Cotton & Co. Ltd. The appellants are in appeal against this order. 3. We have heard both the sides and have carefully considered the matter. Since both the appellants as well as M/s. Greaves Cotton & Co. Ltd. were Limited Companies, there could be no question of the one being a relative of the other. Further, since neither of them was holding any shares of the other Company, the learned Representative of the Department could not tell us how the mutuality of interest in the business of each other arose in this case. The appellants submitted that the Andhra Pradesh High Court's judgment in the Moped India Ltd. case had been reversed by the Hon'ble Supre....

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....reaves Cotton & Co. Ltd. were not a related person of the appellants. At the same time, we hold that the price paid by M/s. Greaves Cotton & Co. Ltd. was not the sole consideration for the sale. Accordingly, we set aside the impugned orders and remand the matter to the Assistant Collector who shall determine the money value of the additional consideration and add it to the sale price paid by M/s. Greaves Cotton & Co. Ltd. for determining the assessable value of the goods. The appeal is allowed by way of remand in these terms. 5. The appellants stated that their Company was in the process of being wound up and hence the remand proceedings needed to be expedited. With a view to facilitating the expeditious conclusion of the remand pro....