2010 (11) TMI 912

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ised by holding that the applicant-company is a related person of M/s. Britania Industries Ltd. (M/s. BIL) in terms of an agreement for purchase of goods manufactured by the applicant. 3. Learned Senior Advocate draws our attention to the Stay Order in their own case relating to the earlier period vide Order S-133/Kol/2007 dated 1-2-2007 in Excise Appeal No. 573/2006 by which pre-deposit of duty and penalty was waived. He submits that the said Stay Order has been extended by the Tribunal and the Department challenged the said Order before the Hon'ble High Court and was not successful. Inasmuch as on the very same issue, the Coordinate Bench of the Tribunal has granted stay from recovery of the dues, the learned Sr. Advocate seeks wa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... in terms of contract. 3.       Duty-demand has been made by holding the applicant and M/s. Britania Industries to be related persons. 4.       The contention of the ld. counsel is that the Order is contrary to the judgment of the Honourable Supreme Court in the case of Pawan Biscuits reported in 2000 (120) E.L.T. 24 (S.C.). 5.       The very basis for the finding appears to be unsound. The Stay Petition is allowed and recovery stayed till disposal of the appeal." 7. The said Stay Order does not discuss relevant facts in detail and does not indicate as to how the decision in the case of Pawan Biscuits is applicable. It is not clear whe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ale etc. The documents seeking concurrence of M/s. BIL for appointment of sweepers, gardeners, cooks, helpers, office peons by the applicant are also relied upon. It has also been held by the Commissioner that M/s. BIL had an un-written say and decision making powers over even the routine expenses incurred by the assessee. A perusal of the sale agreement indicates, prima facie, that the applicant has given extraordinary powers to M/s. BIL who are buyers of the final products. Under these circumstances, we are not able to appreciate the submission that the transanctions between the applicant and M/s. BIL are at arm's length. Further, in the price declaration filed by the applicant, information given relating to recovery of additional amounts....