M/S BILAG INDUSTRIES P.LTD. vs COMMR.OF CEN.EXC.DAMAN — C.A. No. 9195 - 9196/2010

Case Summary: M/S Bilag Industries P. Ltd. v. Commissioner of Central Excise, Daman Court Decision: The Supreme Court allowed Bilag Industries' appeal and set aside the CESTAT order. The Court held that BIL's sales to Aventis CropScience (India) Ltd. were NOT transactions with a "related person" under Section 4(4)(c) of the Central Excise Act, 1944, as there was no mutual business interest between the seller and buyer despite common shareholding. Key Reasoning: The Court applied the established test requiring MUTUAL interest—both the seller must have interest in the buyer's business AND vice versa. While AgrEvo SA held majority shares in both entities, BIL had no interest in Aventis CropScience (India) Ltd.'s affairs, nor did Aventis have interest in BIL's operations. The Court rejected the CESTAT's "combined operation" theory, finding the transaction was at arm's length with documented cost-plus profit margins and no evidence that prices were depressed below market rates. This case analysis is maintained by casestatus.in based on publicly available court records.