1979 (6) TMI 51 - CGOVT - Central Excise

Summary

Issues:
1. Interpretation of section 4 of the Central Excises and Salt Act, 1944 regarding determination of assessable value for electrically operated cash registers.
2. Whether sales made directly to industrial consumers qualify as wholesale trade under the Act.

Analysis:
The judgment pertains to the review of an order-in-appeal regarding the determination of assessable value for electrically operated cash registers. The party, a manufacturer, contended that sales to industrial consumers should be treated as retail sales, while the Assistant Collector determined the price under wholesale trade provisions. The Appellate Collector agreed with the party, ordering the price to be determined under retail sale provisions.

Upon review, the Central Government found the Appellate Collector's order to be legally incorrect, as per the definitions in section 4 of the Act. The Government issued a show cause notice to the party, questioning the Appellate Collector's decision and seeking justification for setting it aside. The party, represented by an advocate and a sales manager, argued that their sales were retail and not wholesale, emphasizing that no sales were based on theoretical patterns as assumed by the Assistant Collector.

After considering the submissions, the Government concluded that no wholesale sales were made by the party due to the nature of their product. Even when selling in large quantities to a single customer, the transactions were intended as retail sales to various units. Consequently, the review proceedings were dropped, affirming the party's position regarding the nature of their sales and the determination of assessable value for the cash registers.