9911796707
TMI Blog1998 (7) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... d on acetic acid cleared to the branches of the appellant at Bombay and Ahmedabad during the period from January to July, 1983. It was found that during the period from January 1982 to July 1983, appellant had cleared acetic acid to independent wholesale dealers as well as to the branches at Ahmedabad and Bombay and the invoice prices shown in respect of clearances effected to the two branch offices were much less than the invoice price at which sales had been effected to independent wholesale dealers during the period. Accordingly, four show cause notices were sent to the appellant stating that in respect of the transfers effected to these branches (notice mentioned one sister concern), duty was liable to be paid on genuine invoice price a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viable thereon 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 the sale of such goods;" [Emphasis supplied] The proviso to notification states that the exemption shall be admissible only if the conditions in clauses (i) to (v) of the proviso are satisfied. Provisos (ii), (iii), (iv) & (v) read thus :- "(ii) the manufacturer avails of the said exemption uniformly in respect of all goods, sold by him. --- fall under the Item aforesaid; (iii) the manufacturer certifies that the price referred to in the invoice represents the price actually charged by him for the relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 4(1)(a) of the Act would depend upon the normal price of goods sold i.e. price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal, where the buyer is not a related person and the price is the sole consideration for the sale. The prices at which the goods were sold at the branch offices to independent wholesale dealers can be regarded as the normal price only if such prices govern factory gate sales also at the time and place of clearance of stock to branches. The grievance of the appellant as projected before us is that goods were being sold at the factory gate during the relevant months to independent wholesale dealers at different prices and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold by the party to the independent buyers at prices on which difference of value for calculation of amount of duty short paid has been calculated as per these 4 show cause notices on or near the dates on which such goods were removed on transfer." The above observation will indicate that substantial quantities of similar goods were sold to independent buyers at factory gate prices adopted in the show cause notice at or near the respective dates of clearances to branch offices. This method adopted by the Assistant Collector fits in with the scheme of Section 4(1)(a) of the Act. The conduct of the appellant not referring to any invoice or other document establishes that the factual position seen in the above observations is correct. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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