2016 (6) TMI 1015

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....or sale of their items they were offering a discount of 10% to all industrial customers and a trade discount of 25% to retailers who have purchases above Rs. 60 lakhs in a calendar year. During the course of audit of their accounts, officers found that one M/s. Seth Trading Company, a partnership firm is the only buyer purchasing goods for above Rs. 60 lakhs and availing the trade discount of 25%. It is seen that M/s. Seth Trading Company is a partnership firm of four partners who are wives / sons of Directors of the appellant company. Hence by entertaining a view that the transaction between the appellant and M/s. Seth Trading Company can be considered as transaction between interconnected undertakings in terms of section 2(g) of MRTP Act ....

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....ere not examined by the Commissioner (A) in his impugned orders. 4. We have heard both the sides and examined the appeal papers. The short point for discussion is whether or not M/s. Seth Brothers (Perfumers) P Ltd. - respondent in these appeals and M/s. Seth Trading Co. were interconnected undertakings for the purpose of valuation of excisable goods cleared by the respondent. We find that the original authority as well as Revenue in the grounds of appeal has fallen in error to consider two separate legal entities as interconnected undertakings without any legal basis. The respondents are a registered Pvt. Ltd. company having the status of a separate legal entity. The fact that some of the close relatives of the Directors of the responde....