2012 (10) TMI 733

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....he Appellant. Shri P. Shah, Advocate, for the Respondent. [Order per : S.S. Kang, Vice-President]. - Heard both sides. 2. Revenue filed this appeal against the impugned order passed by the Commissioner of Central Excise, Pune-I whereby the proceedings initiated by show-cause notice for demand of duty, interest and imposition of penalty were dropped. 3. The case of the Reve....

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....Directors are common in both the companies. Eight shareholders, including the Directors are holding 82.01% shares of M/s. Indus Fabricons and 93.31% shares of M/s. Mojj. M/s. Mojj has been paying salaries, commission and dividend to common Directors/shareholders irrespective of their working for M/s. Indus Fabricons. At the same time, M/s. Indus Fabricons are not paying any salary, commission, div....

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....the show-cause notice it is admitted fact that M/s. Indus are selling 90% of the goods to M/s. Mojj only. The contention is that 10% of the goods sold to independent buyers at the comparable price. It is also submitted that M/s. Mojj Engg. is also purchased the same goods from other manufacturer at the same price. In view of this evidence, it cannot be said that M/s. Indus Fabricons are clearing t....

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....r shareholding, have an interest in the business of the company. Equally, the fact that two public limited companies have common Directors does not mean that the one company has an interest to the business of the other. It is, therefore, not possible to uphold the conclusions of the Tribunal that the assessee and the chemical company were related persons. This being so, it is unnecessary to go int....