2006 (7) TMI 45

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....ovino torches in other half of the country. The MRP for the torches is the same for the consumers through out the country. 2. For Excise Duty purpose, the appellants have shown much lower value for their sale to LNL compared to the price at which they themselves are paying duty for transfer of the torches to their own Depots, for subsequent retail sale. The Adjudicating Commissioner has ordered assessment of sales LNL at the same price at which the appellants themselves have cleared the impugned goods for transfer to their own depot. The appellants are in appeal before us against this impugned order. The adjudicating Commissioner has also ordered payment of interest under Section 11AB on duty demand of Rs. 23, 86,944/- confirmed by him. ....

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....ted persons and the price was the sole considered for the sale. The Ld. Advocate for the appellants has argued at length to say that the appellants and LNL cannot be considered as related persons. We find that the adjudicating Commissioner has in his order held that sufficient material, including the fact that in respect of the sales to LNL, no royalty was being included (which was required to be paid by the appellants for undertaking the manufacture of the impugned "NOVINO" Torches using the Brand name of LNL), exists to come to a conclusion that price was not the sole consideration of sale. 5. The provisions of Section 4 require that the buyer should not be a related person for the price to be accepted. It also independently requires t....