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TMI Blog1994 (12) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... discs supplied by the appellants1. The gramophone records received by the appellants1 from M/s. Music India Ltd., Bombay were sold at a higher price under their own brand name. The appellants1 were served with a show cause notice alleging that the value of the records obtained by them from M/s. Music India Ltd., Bombay for sale after affixation of their brand name was required to be added to the value of goods produced and cleared by them from M/s. Saraswathi Stores for the purpose of computing the value of goods cleared for the purpose of Notification No. 83/83, dated 1-3-1983. The show cause notice further alleged that the aggregate value of the goods manufactured by them and those manufactured by M/s. Music India Ltd. on their account ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es by M/s. Saraswathy Stores since M/s. Music India Bombay who had taken out a licence and paid the duty had to be deemed as the manufacturers of the gramophone records in question. 2. On behalf of the appellants Shri R.K. Kapoor, Ld. SDR submitted that the Collector (Appeals) had erred in holding that the respondents could not be deemed as manufacturers of gramophone records in question which were manufactured out of the master-discs supplied by the appellants1 and which were finally sold by them to consumers at a higher price than what was charged by M/s. Music India Ltd., Bombay. He contended that the respondents had to be deemed as manufacturers of the gramophone records in question since in terms of Section 2(f) `manufacturer includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Ltd., Bombay who had to be deemed as the manufacturers, since they had engaged in the production of the goods in their factory after taking out a Central Excise Licence and had cleared the goods after payment of duty on their wholesale price, and such duty was paid by the respondents to M/s. Music India as purchasers of the goods. 6. It is seen that in the case of M/s. B.S. Rajasekar v. Collector of Central Excise, reported in 1993 (63) E.L.T. 369 the Tribunal has held that supply of raw materials to other independent units for manufacture of goods will not make the raw material supplier the manufacturer when the dealings between the two are on principal to principal basis and the units are not fake or dummy. Paras 6 and 7 of the said o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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