Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1985 (2) TMI 181 - AT - Central Excise
Issues involved: Appeal against Order in Review passed by Collector, Central Excise, Madras regarding assessable value of aerated waters under Chapter VIIA.
Assessable Value and Related Persons Issue: The appellants, a private company manufacturing aerated waters, filed price lists declaring assessable value excluding transport charges, provisionally approved by Assistant Collector under Rule 9B. Collector issued show cause notice for review, holding sales not at arm's length to related persons. Appellants argued sales not to related persons as distributors not associated with assessee. Supreme Court precedent clarified related person as relative within the meaning of Companies Act, 1956. Tribunal found Department failed to show distributors' association with assessee, hence sales not to related persons. Correct Assessable Value Issue: Regarding determination of value including transport charges, appellants' sales partly at factory gate with distributors clearing and transporting goods. Appellants collected transport charges based on delivery zones. Lower authorities rejected exclusion of charges as equalised freights, not actual transportation charges. Tribunal referred to precedent stating sales at factory gate should be considered for normal price determination. Collector's order not following correct legal position, hence set aside. In conclusion, the Tribunal accepted the appeal and set aside the impugned order in favor of the appellants.
|