9911796707
TMI Blog1996 (10) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 2. The Assistant Collector initially had passed an order on 22-9-1981 which had been set aside by the Collector (Appeals) who remanded the case for fresh adjudication. After remand the Assistant Collector passed an order confirming the demand on 25-7-1986 and this has been confirmed by the Collector (Appeals). 3. Appellant is engaged in the manufacture of chemicals falling under erstwhile Tariff Item 68. Appellant had opted for self removal on the basis of invoice procedure under Notification No. 120/75, dated 30-4-1975 and availing the benefit of exemption therein. One of the finished products of the appellant is temporary corrosion preventive fluid (T.C.P.F.) which during the two relevant periods was being sold only to one party na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the price of their buyers was adopted as the basis. The Appellant Collector indicated that the supply of raw materials by the buyers to the manufacturer had direct effect and influence over the invoice price. 5. It is apparent that both the lower authorities found that appellant did not satisfy the condition in Proviso (iv) to Notification No. 120/75. The notification exempts goods falling under erstwhile Tariff Item 68 cleared from the factory on sale from so much of the duty as is in excess of the duty calculated on the basis of the invoice price (excluding duty and local taxes, if any, included in such price) charged by the manufacturer for sale of such goods. The proviso indicates that the exemption is admissible only if the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be procured by you. You will be allocated the necessary quantities of Mineral Turpentine and Bharat Osmex/Cylinder Oil for processing of our requirements if required. Rate accepted by you would remain firm during the tender period except that we shall consider proportionate escalation in your rate; if there is any variation in the price of Mineral Turpentine. For every Rupee increase/decrease per kl. in the price of Mineral Turpentine, we shall consider increase/decrease of Rs. 0.79 per kl. The letter also gave the price of Mineral Turpentine at the time of quotation. The lower authorities thought that the contract required M/s. B.P.C.L. to supply all raw materials. This view was based on a misunderstanding of the clause quoted above. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... send samples to independent laboratories in which case 50% cost will be met by the appellant. This was an additional test which was not part of the manufacturing activity or which did not contribute in making the goods fit for delivery. This was an additional test according to buyer s desire and the appellant agreed to meet half the cost. We fail to see how this clause would show that condition proviso (iv) of the Notification is not satisfied. Condition requires a relationship. The invoice price should not to be influenced by such relationship. We believe that the condition regarding cost of additional cost would have been there in the tender notice and that being so, every tenderer would have taken this aspect into consideration in quoti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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