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Issues:
Challenge to order of Appellate Collector regarding assessable value determination based on sale price, interpretation of manufacturing relationship between two petitioners. Analysis: The writ petition challenged the order of the Appellate Collector, which determined the assessable value of goods manufactured by petitioner No. 2 to be the price at which they are sold by petitioner No. 1. The case involved the manufacturing and sale of paints, varnishes, enamels, etc., by petitioner No. 2 to petitioner No. 1, with the goods branded under petitioner No. 1's name. The dispute arose when the Excise Authorities requested the price list at which goods were sold by petitioner No. 1, leading to a conclusion by the Deputy Collector that petitioner No. 1 should be deemed the manufacturer and the selling price should be the assessable value. The Appellate Collector, in the subsequent appeal, considered the transaction between the petitioners as at arms length but found the wholesale cash price unascertainable due to exclusive sales to petitioner No. 1. Consequently, the assessable value was determined based on the price at which petitioner No. 1 sold goods to independent dealers, a decision challenged in the writ petition. The judgment referenced a Supreme Court case where the Court analyzed a similar scenario, emphasizing the joint manufacturing program, quality standards, buyer's right to reject goods, and ownership of plant and machinery as factors indicating the seller as the manufacturer. The High Court highlighted that the Excise Authorities did not examine the inter se agreement between the petitioners and failed to apply established legal principles. While acknowledging the authorities' duty to consider all facts to determine if the petitioners were related and if petitioner No. 1 qualified as a manufacturer, the court refrained from delving into factual investigations. The court directed the Deputy Collector to pass a fresh order considering the Supreme Court decisions cited in the judgment within six months, without interference with the Appellate Collector's decision. Ultimately, the writ petition was disposed of with each party bearing its costs.
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