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TMI Blog1996 (10) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... Hingorani was the Managing Director of the appellant company with Shri Kishan Hingorani, his son as the other Director. Shri G.S. Gas Agency was the sole proprietary concern of Smt. Gita the wife of Shri Gopal Hingorani. After recording the statement of Shri Gopal Hingorani the jurisdictional officers were of the belief that M/s. G.S. Gases were "related persons" of the appellant unit and, therefore, the value at which such goods were sold by such related persons to their customers, should be taken to be the value for purpose of assessment at the manufacturers end. On such recalculation the total value of clearances made to G.S. Gas Agency as well as to others were found to be higher than the limits specified by the relevant Notification. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between a proprietor of the sales agency and the Managing Director of the manufacturing company could not have any bearing on the relationship as envisaged in Section 4 of the Central Excises and Salt Act, 1944. This was the ratio of the Apex Court judgment rendered in the case of Union of India and Others v. Kantilal Chunilal and Others - 1986 (26) E.L.T. 289 (SC). He stated that these two judgments would show that these two units were not related and that the very concept of related person was to ensure that there should be no artificial depreciation of assessable value. Referring to the annexures to the Show Cause Notice which give details of other charges charged to the dealers, Shri Lakshmikumaran, ld. Counsel claimed that the prices a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the dealers from their buyers, were sought to be added. The jurisdictional Assistant Collector in his earlier order dated 27-3-1982 had permitted deductions for loading and unloading charges as well as holding charges. He claimed that Assistant Collector in his order referring to the case of Collector of Central Excise v. Indian Oxygen Ltd. - 1988 (36) E.L.T. 730 (SC) had held that rental charges for gas cylinders were not includible in the assessable value. Maintenance and service charges for durable and returnable containers were held to be deductible from the assessable value by the Tribunal in the case of Collector of Central Excise v. Century Spg. and Mfg. Co. Ltd. - 1988 (37) E.L.T. 277 (Tribunal). Summing up Shri V. Lakshmikumaran, l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lleged and the wholesale cash price at which the goods were sold by the assessee to the various dealers at the factory gate the only price liable to be taken for the purpose of levy of excise duty. This judgment of the Hon'ble Supreme Court is an exact precedent for the case before us. The percentage of goods sold is also an indicator to relationship. In the second cited case the Hon'ble Bombay High Court has observed as under :- "The language of this proviso clearly shows that it applies only where all the goods are sold through a related person. If some of the goods are sold to persons or entities other than the related persons, naturally this proviso would not come into operation. In instant case, the firm who form the wholesale buyers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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