ORDER

The appellant is a public limited company. It manufactures glassware. One of the purchasers of such glassware during the period under appeal, namely, 6th September, 1979 to 15th January 1983 was the Alembic Chemical Works Company Limited. Because the assessee held shares in this chemical company and the chemical company held shares in the assessee and the chairman and three directors were common, it was contended by the revenue that they were "related persons" and that the price at which the assessee sold glassware to the chemical company should be marked up for the purposes of valuation for excise duty.

2. The matter having reached the tribunal, the case put forth by the revenue was accepted on this basis:

"In the present case both the companies were set up by the same family and the appellant company is holding 9% of the shares of M/s. Alembic Chemical Works Co. Ltd. while M/s. Alembic Chemical Works Co. Ltd. holds 14% shares of the total shares held in the appellant company. It is clear from the fact that they have mutual interest in the business of each other. Furthermore, the chairman and the three directors are common and it is implied, both the companies are managed by sa