2001 (1) TMI 617 - AT - Central Excise

Summary

Issues:
Appeal arising from common question of law and facts, treatment of different dealers in different regions as separate class of buyers, application of law in determining different prices for different buyers, misdirection by Collector (Appeals) in rejecting appeals.

Analysis:
The judgment involves the consideration of multiple appeals arising from a common question of law and facts. The issue revolves around the treatment of different dealers situated in different regions as separate class of buyers, specifically regarding the legality of adopting different prices for these buyers. Initially, the matter was adjudicated by the Assistant Collector, then appealed before the Collector (Appeals) who remanded the case for de novo consideration. The Assistant Collector rejected the plea to treat different dealers in different places as separate class of buyers, following the law as per the Bombay High Court judgment. The Collector (Appeals) rejected the appeals without addressing this crucial question, leading to confusion and misdirection in the order.

The legal contention presented by the learned Counsel emphasizes that current law mandates treating different dealers in different regions as distinct classes of buyers. Citing various judgments, including Gora Mal Hari Ram Ltd. v. CCE and other Tribunal decisions, the Counsel argues that different prices for different class of buyers in various regions must be recognized under Section 4 of the Act. The learned DR, on the other hand, supported the Assistant Collector's decision based on the prevailing law at the time and highlighted that the Collector (Appeals) rightly rejected the appeals as the issue of local taxes was not part of the original order.

Upon thorough consideration of all submissions and orders, the Tribunal observed that the Collector (Appeals) had erred in misdirecting himself by rejecting the appeals on the grounds of new pleading. The Tribunal clarified that the Assistant Collector's reliance on the Bombay High Court judgment was erroneous, as the current legal position mandates treating different dealers in different locations as distinct class of buyers. By examining relevant judgments and distinguishing the Godrej Boyce Manufacturing Co. Ltd. case, the Tribunal concluded that the appellants' plea should be upheld, and the appeals allowed with consequential relief in accordance with the prevailing law.

In conclusion, the judgment clarifies the legal position on treating different dealers in different regions as separate class of buyers and highlights the importance of applying the correct legal principles in determining prices for different buyers. The Tribunal's decision provides clarity on this issue and sets a precedent for future cases involving similar considerations.