SANTHOSH PHARMACY Vs. COMMISSIONER OF CENTRAL EXCISE, COCHIN

JUDGEMENT

(1.) THE above appeal arises out of the Order of the Commissioner of Central Excise (Appeals), Cochin, upholding the duty demand of Rs. 37,214/ - together with interest, covering the period from 10 -11 -1999 to 31 -3 -2000 holding that the value at which the sole distributor/super stockist sold Ayurvedic Medicines manufactured by the appellants herein, should be adopted as the assessable value therefor. The appellants have asked for a decision on merits; hence, we heard the learned SDR and perused the records.

(2.) WE find that the super stockist M/s. K.K. Enterprises is a proprietary concern of the son of the proprietor of M/s. Santhosh Pharmacy, the appellants herein and, therefore, falls under the definition of related person as per Section 4(4)(c) of the Central Excise Act, 1944. We also note the findings of the Commissioner (Appeals) that the profit accrued from the business goes to the same family thus establishing that there is mutuality of interest in the business of each other. In the light of this factual position and the Tribunals decision in Avon Scales Co. v. CCE, Delhi - 1999 (111) E.L.T. 613 (Tribunal) holding that in the case of manufacturing concerns consisting of partnership of father and son and the trading concern consisting of partnership of mother and another son, they were related persons since both the concerns were owned by close family blood relations and, therefore, the price at which the related concern sold the goods for the first time in the open market is to be adopted as the assessable value, is applicable on all fours to the present case. Following the ratio thereto, we uphold the impugned order and reject the appeal.