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2019 (1) TMI 973
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....ules. 3. For the sake of the convenience, we reproduce Rule 9 of the Valuation Rules, both before amendment and after amendment with effect from 1/12/2013. The period involved is from June, 2012 to March, 2017. Pre amended : "Rule 9. When the assessee so arrange that the goods are not sold by an assessee except to or through a person who is related in the manner specified in either of sub-clauses(ii), (iii) or (iv) of clause (b) of sub Section(3) of Section 4 of the Act, the value of the goods shall be the normal transaction value at which these are sold by the related person at the time of removal, to buyers (not being related person); or where such goods are not sold to such buyers, to buyers (being related person), who sells suc....
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....Parasmal Jain & nephew of Shri Bilesh Jain and also nephew of Shri Suresh Jain. (ii) M/s AETC Shri/Smt Designation Relation Suresh Jain Partner Husband of Smt. Manju Devi Jain and also brother of Shri Parasmal Jain & Shri Dinesh Jain and uncle of Shri Bilesh Jain. Manju Devi Partner Wife of Shri Suresh Jain also wife of brothers Shri Parasmal Jain & Shri Dinesh Jain and aunty of Shri Bilesh Jain" 5. Further, the learned counsel also compared the total volume of transaction in monetary terms as per the balance sheet with independent parties and the alleged related parties as follows; Balance Sheet for the year Revenue from operation i.e. from sale of products including duty (in Rs.) Related Party Tra....
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....Out of five buyers, four are proprietary concerns. These are M/s. Kishan Steel Rolling Mills, Proprietor, Shri Rajesh Kumar Agarwal, Shri Kishan Mechanical Works, Proprietor, Shri Anand Kumar Agarwal, Shree Krishan Steel Unit-II, Proprietor, Shri Naval Kishor Agarwal and Shree Ram Steels, Proprietor, Shri Krishna Kumar Agarwal. The fifth buyer, M/s. Cosmos Ispat Pvt. Ltd is a Private Limited Company having three Directors. The Original Authority held that the respondent and the four buyers, who are proprietary concerns, do not fall under the category of inter-connected undertakings under Section 2(g) of MRTP Act. The Original Authority found that the respondent and M/s. Cosmos Ispat Pvt. Ltd. are "inter-connected undertakings" in terms of s....
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....ed as under the same management if one or more Directors constitute 1/4th of the Directors of the other. Hence, it was pleaded by the Revenue that all the buyers are inter-connected with the respondent. We find that this submission is legally untenable and misconceived. The provisions of MRTP Act talks about inter-connectivity between two body corporates. Here, it is an admitted fact that four out of the five buyers are proprietary concerns. The respondent is a Public Limited Company. The Revenue also relied on the provisions of Rule 9 without specifically alleging that all the goods manufactured by the respondent are sold, to or through these purported related persons. Further, we find that the Revenue's assertion that a jurisdic person al....
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....rly in the case of Kwality Ice Cream Company's case referred to supra, the Hon'ble Apex Court held that to be held as related persons, each of the parties involved should have direct or indirect interest in the business of each other and certain interdependence and reciprocity beyond relationship are required to consider whether the parties are related persons. In CCE, Ahmedabad v. Xerographic Ltd., case referred to supra, the Hon'ble Apex Court reiterated the well settled principle and laid down the three conditions that are required to be satisfied before it can be inferred that there exists a relationship. The three conditions are namely, (i) there should be mutuality of interest, (ii) alleged related person should be related to the asse....