2003 (12) TMI 539

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.... Appellant. Shri S.V. Parelkar, JDR, for the Respondent. [Order per : Moheb Ali M., Member (T)]. -  This application is made for waiver of pre-deposit and stay of recovery of the amount of duty of Central Excise confirmed by the Commissioner to the Tune of Rs. 1,55,42,040/-, penalty of equal amount, demand of interest under Section 11AB from the appellants. The facts are that the app....

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....epartment contended that M/s. GLB incurred advertisement expenses and also received trade advance of Rs. 56,55,595/- from the appellant company. It is the department's contention that these two factors indicate that the transaction is between related persons. The Commissioner in the impugned order determined the assessable value under Section 4(4)(c) as amended. The stay application arose out of t....

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....he case of Havmor Ice Cream Company v. Collector of Customs, Ahmedabad, [1991 (89) E.L.T. 65 (Tribunal)] wherein it is held that supply of entire production to distributor and the latter incurring advertisement expenses do not indicate any relationship between the two persons. He also cited the case of Moon Beverages Ltd. v. Commissioner of Central Excise, Meerut [2003 (156) E.L.T. 396 (Tri. - Del....

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....s. The issue involved is squarely covered by the decision of the Tribunal in the cases cited by the ld. Advocate. Relationship between a company and a partnership firm cannot be established by the near fact that some of the partners are related to the Directors of the company. We also observe that the trade advance and advertising expenses received and incurred respectively by the distributors can....