- (1.) THESE appeals are preferred by the Commissioner of Central Excise, Mumbai -V (hereinafter referred to as the Revenue) in which there are five respondents and the names of these respondents are (1) M/s. ']' Foundation, (2) M/s. '}' Traders (3) M/s. Janata Glass Works (4) M/s. Haldyn Glass Works and (5) M/s. Travin Trading & Investment Pvt. Ltd. The dispute pertains to the transaction value that is to be arrived at in respect of the goods which were exigible to excise duty and were cleared by M/s. Haldyn Glass Works (hereinafter referred to as M/s. Haldyn).
(2.) THESE goods were, inter alia, supplied to M/s. J. Foundation, M/s. J. Traders and M/s. Janata Glass works and to the fourth respondent M/s. Travin Trading & Investment Pvt. Ltd. M/s. Haldyn is the joint venture of two groups known as Shetty group and Mehta group who were having shareholding of 52 per cent and 48 per cent respectively in M/s. Haldyn. After going through the records, the Revenue found that the aforesaid four firms/companies to which the goods were supplied by M/s. Haldyn are the firms of Mehta group and Shetty group respectively. The relationship which was found in this respect is described as under: - - "...Smt. Shakuntala Shetty and Smt. Vinita Shetty, wife and daughter, respectively, of Shri N.D. Shetty were Directors of M/s. Tervin Trading and Investment Pvt. Ltd.; Shri N.D. Shetty was holding shares of M/s. Tarvin Trading alongwith his wife and daughter, when he was holding shares of M/s. Tarvin Trading alongwith his wife and daughter, when he was Director of M/s. Haldyn Glass Ltd. and 92% to 95% of total purchases of glass bottles of M/s. Tarvin Trading and Investment was from M/s. Haldyn Glass Ltd. and there was profit margin of 20% to 25% to M/s. Tarvin Trading and M/s. Tarvin was engaged in the activity of trading in glass bottles since the year 1990. Thus Shri N.D. Shetty at one end was controlling activities of M/s. Haldyn Glass Ltd. as a Managing Director and at other end activities of M/s. Tarvin Trading as a major shareholder/close relative of Directors, whose major purchases were from M/s. Haldyn Glass Ltd. and there was 20% to 25% profit to M/s. Tarvin Trading. It is also record that constitution of J. Group of concerns was as under: 1. M/s. Janata Glass Works - started actively in the year 1962: a. A.A. Mehta, Partner b. H.A. Mehta, Partner c. A.H. Mehta, Partner d. U.J. Mehta, Partner II. M/s. J. Foundation - started actively in the year 1991. Stopped actively in the year 1990: a. A.A. Mehta, Partner b. H.J. Mehta, Partner c. Smt. M.H. Mehta, Partner III. M/s. J. Traders - Started activity in the year 1981. Stopped activity in the year 1990. a. H.A. Mehta, HUF, Partner b. J.A. Mehta, HUF, Partner c. Mrs. R.A. Mehta, Partner d. A.A. Mehta, Authorised Signatory"
(3.) IT is seen from the above that insofar as the M/s. Travin Trading & Investment Pvt. Ltd. (hereinafter referred to as M/s. Travin) is concerned, it was a private limited company in which Shakuntala Sherry and Vinita Shetty, wife and daughter respectively of N.D. Shetty, were Directors. On the other hand, insofar as the other firms are concerned, they belong to Mehta group which are all partnership firms in which family members of Mehta group were the partners.;