9911796707
TMI Blog1987 (5) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi and issued on 8-11-1979. 2. The respondents, M/s. Sitapur Plywood Mfg. Co., Sitapur, were issued Show Cause Notice to show cause as to why a penalty be not imposed upon them for violation of Rule 173C(2A) read with Rule 173-0 of Central Excise Rules, 1944 and Section 9 of the Central Excises and Salt Act, 1944, and why the duty short paid by them on all such goods which were supplied to their agents/distributors with effect from 5-7-1976 up-to date be not recovered under Rule 10 of the said Rules, on the allegation that they have obtained approval on 5-7-1976 on the price list dated 5-3-1976 and 7-5-1976, and on subsequent price lists, on furnishing a false, misleading and erroneous declarations vide their letter dated 1st July, 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objection to the effect that the Show Cause Notice in question issued by the Central Government under erstwhile Section 36(2) of the Central Excises and Salt Act, was time-barred, being issued after the expiry of six months as provided under Section 11A of the Central Excises and Salt Act, 1944. In other words, he submitted that larger period of five years provided under the said Section 11A was not available. He, with the help of the decision rendered by the Special Bench of this Tribunal in the case of Military Dairy Farm v. Collector of Central Excise, 1985 (19) E.L.T. 148, submitted that in the instant case Appellate Collector passed the impugned order on 8-11-1979 whereas the Show Cause Notice was issued on 31-10-1980 by the Central Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the agents direct or to any other party in the agent's territory, and that the amended clause (c) of clause 2 provides for over-riding commission. He also submitted that a close scrutiny of the agreement entered into between the respondents and their wholesale dealers reveals that the following extra commercial controls were exercised over such agents and the agents could sell the goods in the market subject to the following conditions : "1. The manufacturing Co. fixed rates for wholesale transaction and the agents were not permitted to sell the goods beyond such rates without the written permission of the company in writing. 2. The agents could not allow any discount to any purchase without prior permission of the company in writing. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the country and that these wholesale dealers have no territory assigned to them and they are free to deal in goods of other manufacturers. These wholesale dealers also do not maintain any show room on account of the respondents nor render any after sale service. The Appellate Collector has further found that the sales to the wholesale dealers are in the nature of outright cash sales and property in the goods is passed on to the dealers immediately on delivery and there is no obligation on the respondents to receive back or replace damaged goods. He has further found that there is no evidence on record to show that the respondents and wholesale dealers have interest directly or indirectly in the business of each other. 6. After giving ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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